70-80% of all M&As fail to achieve their financial goals
As stock prices and corporate cash levels continue to be close to record highs, and interest rates stay near historic lows, M&A activity over the coming year is set to remain high.
For CEOs and private equity executives with ambitious growth targets, acquiring another company can be a very attractive proposition. Yet survey after survey reports that as many as half of all mergers and acquisitions concluded don’t achieve their financial goals, and between 70-80% don’t create significant value. In the face of these disappointing statistics it’s an imperative for executives to change the way they approach transactions.