Senior partners discuss M&A trends like shift to growth, private equity impact, regulatory hurdles, 'transact to transform' concept, and the rise of alliances in the global landscape.
Shift in deal rationales from consolidation to growth and capability building.
Emphasis on integration planning for successful value creation and sustained performance post-separation.
Deep dives
Evolution of Deal Rationales
The focus of deal rationales in recent years has shifted from consolidation within the same market or product to growth and capability building. While consolidation remains significant, about 50 to 60% of deal rationales now involve acquiring new capabilities or entering new markets to drive growth and revenue.
Renewed Market Optimism
There is a sense of renewed market optimism with deal makers discussing pragmatic aspects of deals and a shift towards growth-oriented strategies. CEOs and boards are actively engaging in M&A discussions, anticipating increased transactions over the next 12 to 18 months.
Importance of Integration Planning
Successful acquirers focus on integration planning and execution, acknowledging that value creation occurs during integration. Companies are realizing the significance of post-deal integration for achieving synergies and maintaining business momentum.
Separation Strategies and Portfolio Simplification
Companies are considering portfolio simplification and separations to align with strategic goals. Separations require clear strategies and performance trajectories for both the divested and retained entities. The importance of demonstrating value creation and strategy execution post-separation is highlighted for sustained performance.
Today’s discussion covers several topics from our recent report on top M&A trends. We’re joined by senior partners Jake Henry and Mieke Van Oostende, who co-lead our M&A work globally, and senior partners Michael Birshan and Andy West, who co-lead our Strategy and Corporate Finance Practice.
We discuss the changing landscape of M&A, the shift from consolidation to growth and capability building, the importance of integration planning, the role of private equity, and the impact of regulatory review cycles. We also touch upon the concept of 'transact to transform' and the increasing trend of alliances and joint ventures.