Steering Successful Growth: Value Capture in M&A

The past year has seen a huge resurgence in deal-making activity around the globe. Fueled by a combination of cheap debt, increased boardroom confidence, and the return of growth after the financial crisis of 2008, mergers and acquisitions (M&A) in the United States reached highs not seen for almost a decade. After a period of self-reflection and consolidation, companies are looking to inorganic growth again, and their executives are hoping their M&A efforts will spur innovation, capture synergies, and make up for lost time.

With this growth in deal activity, however, comes increased pressure to ensure that the deals completed generate the maximum value as competition and pricing are running high. But what separates the deals that capture value from the deals that do not? With this question in mind, Crowe Horwath LLP teamed with Mergermarket, a provider of M&A intelligence, to interview 100 U.S. corporate executives about some of their most recent deals – looking in particular at what the acquiring companies set out to achieve, the processes they used, and whether they deemed the deals successful or unsuccessful in terms of capturing value. In this report, we use the collected data to identify some of the important differences between good and bad deals, and we provide some comments from the interviewed executives.