Why do some deals fail to generate the expected value?
Companies report that almost half of their deals fail to generate the expected value or return on investment. While people often blame outside factors, such as market or sector forces, the failure is largely due to gaps in integration execution. A 2019 Deloitte survey found that both corporate and private equity respondents continue to rank effective integration as the single most important factor that leads to a successful transaction.
V&R Integration Team
V&R brings a rigorous approach to your company’s M&A activity pre-, during, and post-integration. We effectively execute current integrations while building a durable infrastructure for future M&A activity. Our team performs a systematic assessment of integration gaps and then executes a prioritized list of changes in partnership with employees throughout your company. Engagement from leadership to the frontline is critical for sustainability. Achieve the expected value from your M&A activity in partnership with the V&R Integration Team.
In addition to our M&A Integration Team, V&R offers M&A advisory services including strategic and tactical advice for companies, financial sponsors and family offices, as well as negotiation assistance and other transaction-related topics. Without professional representation, the typical business owner is facing a daunting task. The first hurdle is determining what the business is worth, then creating documentation to support that, and finally finding buyers willing to meet their value expectations. Professional buyers indicate that V&R clients have a much more realistic idea of their businesses’ values because they have spent time committed to substantive evaluation with a respected M&A advisory firm.
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Source: Deloitte 2019 US Mergers & Acquisitions Trends
Poor M&A results may be attributed to a number of factors: poor strategic or cultural fit, incomplete or haphazard due diligence, paying too much, and/or ineffective integration efforts —but they all point to the same basic fact: it is much easier to do a deal than to implement oneorganizations are being disrupted, real employees are being displaced, and real shareholders are being disappointed—not for lack of effort, but largely for lack of effective and efficient integration planning and execution
Any combination of the eight Cs for a strategic deal rationale requires a well-planned and well-executed integration of some or all of the firm's people, processes, and systems. Serial acquirers perform best when they supplement their deal-making skill with a well-developed and repeatable deal integration capability