Creating Shareholder Value Through M&A – And Beyond

Most acquisitions by public companies fail to create long-term value for their shareholders. However, a few companies have demonstrated the ability to consistently generate shareholder value through inorganic investments. What distinguishes these companies is a set of decision standards and integration skills that lead to outstanding returns on external investment.

HOW ARE VALUE-CREATING ACQUIRERS DIFFERENT?

Value-creating corporate M&A programs focus on three key deal requirements:

Attractiveness

What are the economic profit pools in the target's market, what is the level and driver of the target's share of those economic profit pools, and how does the target's business model align with the acquirer's business model?