Key Trends Oct 2018
Recent surveys of leadership teams undergoing post-merger integrations show some key trends:
– 63% of organizations surveyed are using PMI playbooks and other M&A technology to improve reporting and integration and to reduce team conflicts, costs, and time
Focus on technology
-Technology acquisition is the no. 1 driver of M&A activity, ahead of expanding customer bases in existing markets, adding to products/services, or talent acquisition
M&A deals working better
-Only 12 percent of surveyed organizations report that their M&A deals are not generating the expected return on investment. This is a positive trend compared to a high of 54 percent back in spring 2016
-Industry and sector convergence, and especially vertical integration continue to be major focal areas. Industries that survey respondents felt would continue to be most affected by convergence included life sciences, healthcare, technology, and financial services
Key success factors
-Survey respondents cite effective integration, accurate valuation, and economic certainty as the most important factors for a deal’s success.
-Change management, quality, and timeliness of data, capturing synergies, the speed of decision making, and aligning organizational cultures.
Surveys consistently show that well-planned, carefully-executed post-merger integrations yield transaction success.
Do you have questions about post-merger integration efficiencies, or how to best augment existing organizational resources to achieve PMI success?
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