KPMG’s Transaction Services has released a survey on how successful mergers and acquisitions are in building shareholder value.
Using responses from 118 companies around the world, KPMG has developed a best-practice model to help businesses create value through their transactions.
The research isolated seven key practices likely to have a significant bearing on an M&A.
Eight out of ten respondents believed their deal had been successful but they did not measure shareholder value when evaluating the success of a transaction.
Many companies were found not to measure M&A success at all. Others do review success but do not measure against the original objectives.
The survey showed shareholder value is not always the reason given for M&A activity. Transactions are often undertaken for more immediate reasons, such as increased market share and entry into new geographic markets.
This survey and best practice model can be found at www.kpmg.co.uk/kpmg/uk/services/transaction/case.htm