M&A Services - The Challenges of M&A Execution
The Keystone Group annually surveys industry leaders active in corporate Mergers and Acquisitions. The goal is to better understand how companies view deal performance and manage the complexities of merger integration.
During the month of December 2007, we requested input from a variety of deal participants, including senior corporate and division line managers, senior corporate staff (CFOs, legal, HR, etc) and senior corporate development managers. This report presents the results and provides a unique perspective on how people who are actively doing deals address the challenges of M&A execution.
The findings are presented in four sections covering background on the deals and the market, how companies approach execution, what the outcome of their deals has been and lessons learned. Significant comments have been paraphrased to present a consensus view and preserve anonymity.
Survey Highlights Include:
· Overall expected deal flow to be down in 2008. Less pronounced for mid-market strategic buyers, more pronounced for private equity financial buyers.
· General nature of transactions changing. Less focus on cost synergies and increasing focus on top line and incremental capability expansion.
· Execution requirements (e.g., meaningful target participation in planning) related to new deal environment are still inconsistently addressed. Results in mediocre performance in key areas like knowledge transfer and top line synergy capture.
· Culture integration and assimilation continues to represent a critical risk area relative to deal execution performance.
Please click here to download the 2007 Survey Results of M&A Execution Performance
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