M&A: Big is not always beautiful

Consulting firm Accenture’s study shows that a significant percentage of M&A deals fail to create shareholder value, and that small deals create more value than big ones.
Sushil Saluja: M&A success rates have increased
Sushil Saluja: M&A success rates have increased

It’s the season to take count of league table tallies. This is when everyone studies the rankings to ensure year-end targets are hit, to explain why they haven’t been met if that is the case and to formulate pitches for awards and bonus presentations.

For bankers, the focus is on whether or not deals cross the line. But for CEOs, boards and shareholders, the real measure of a deal is if it succeeds in the long term. Bankers looking to ensure repeat business with corporate clients should also mind that metric, which raises an old question Does MA destroy value or create it

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