While many expected the global recession to be a challenging time for deal-making, a recent study by KPMG reports the reverse. The number of deals made between January 2007 and July of 2009 considered to be successful actually rose to 31 percent versus 27 percent in the last period studied, (See M&A Success Report, below). The study, A New Dawn: Good Deals in Challenging Times, suggests the boost in success rates is likely a result of increased scrutiny, leading companies to ensure not only that they were doing the “right” deals, but also paying close attention to deal execution and integration. “In the more difficult environment, acquirers knew their deals would be under close scrutiny from shareholders and the market, and they made sure that their deals were well executed, for the right reasons, and at the right price,” says Dan Tiemann, KPMG’s global transaction services leader.
When asked what they would do differently in their next deal, most survey respondents cited better due diligence (19 percent) and faster implementation/integration (17 percent) “Some companies start integration planning before deal agreements are even signed to ensure expected synergies from the deal can be realistically achieved,” says Steve Miller, national lead of KPMG’s U.S. Integration Services team “Embedding speed into the process is critical.”
Read more from KPMG’s A New Dawn: Good Deals in Challenging Times.