2014) – While an overwhelming majority of companies with mergers and
acquisitions (M&A) departments are actively pursuing deals, 51 percent of the respondents to the “Critical Pillars for
M&A Success” survey admitted falling somewhat or significantly short of
their desired rate of return on completed transactions. The survey was conducted
by Crowe Horwath LLP, one of
the largest public accounting and consulting firms in the U.S.
The survey, which
incorporated responses from 80 C-suite and corporate development executives, showed
that M&A has become routine for many companies, with 63 percent of the
respondents saying their companies have pursued three or more deals in the past
two years. Yet the respondents admitted to many reservations about their
companies’ deal-making prowess:
“M&A ‘failure’ results when a
deal fails to meet the goals identified prior to the transaction,” said Marc Shaffer, managing
partner of financial advisory services for Crowe. “Our study attempts to peel
back the onion, exploring what’s happening systematically at each level of the
M&A value chain.”
M&A volume has been stable for
three years, and there has been highly visible consolidation in the
telecommunications, media and technology industries, according to the latest
trend report by Mergermarket. Signaling that M&A remains a core piece of a
company’s business growth strategy, most of the responding executives reported
expecting to continue devoting significant time and resources to deal-making in
2014. Executives also said they generally are hopeful about future deals, but most
admitted their companies’ past deals have not achieved hoped-for financial
outcomes and operational synergies.
the high-stakes involved, it should no longer be acceptable for companies to
take a ‘fly by the seat of your pants’ approach to M&A execution,” added Chris
Nemeth, leader of M&A integration services at Crowe. “With more than half
of companies falling short of achieving the desired rate of return, we wanted to examine the root causes
by polling experienced
and sophisticated corporate serial acquirers.”
About the “Critical Pillars for M&A Success” SurveyThe “Critical Pillars for M&A Success” survey was
distributed in November 2013 and received responses from 80 senior executives.
Representing companies of various sizes and industries, respondents identified
themselves as CEOs, CFOs, corporate/business development officers, consultants
and other finance and M&A-focused titles.
more information and to receive the complete survey report, please visit www.crowehorwath.com/criticalpillars-nr.
Horwath LLP (www.crowehorwath.com) is one of the largest public accounting and
consulting firms in the United States. Under its core purpose of "Building
Value with Values®," Crowe uses its deep industry expertise to
provide audit services to public and private entities while also helping
clients reach their goals with tax, advisory, risk and performance services.
Crowe and its subsidiaries have offices coast to coast with more than 3,000
personnel. The firm is recognized by many organizations as one of the country's
best places to work. Crowe serves clients worldwide as an independent member of
Crowe Horwath International, one of the largest global accounting networks in
the world, consisting of more than 150 independent accounting and advisory
services firms in more than 100 countries around the world.
# # #