Annual M&A Success Survey

The Annual M&A Success Survey, supported by Global PMI Partners, E78, and industry collaborators, examines ongoing M&A challenges amid economic uncertainty, high financing costs, and cautious PE activity.

Key Insights:

• Primary Deal Drivers: Market share growth, value creation, and product/service expansion dominate; smaller firms prioritize talent and expertise acquisition.
• Carve-Outs: Focused on divesting non-core businesses.
• Synergy Success: 92% of deals with validated, tracked synergies succeeded, highlighting structured execution’s importance.
• Integration Focus: Early planning and Day 1 preparedness are critical. Most integrations last over 7 months.
• Due Diligence: Finance, HR, and Legal remain top priorities, with growing attention to Tech, Operations, and pre-deal integration planning.
• Tech Trends: Virtual Data Rooms (VDRs) lead, followed by Post-Merger Integration (PMI) tools. AI use is emerging but limited.
• Playbooks: Only 40% of firms use structured playbooks, risking inconsistent execution.
• Cost Strategy: 20% of firms undervalue cost management. Early, disciplined cost analysis is key to value creation.

Observations:

• Integration challenges arise from cross-border deals, cultural differences, and diverse business lines.
• Roll-up strategies need clear operating model decisions (centralized vs. decentralized).
• Effective communication and early acquirer-target alignment boost integration outcomes.
• M&A expertise varies, with many relying on consultants and specialized training.

Conclusion:

M&A success demands rigorous planning, disciplined execution, and smarter use of digital tools. Firms should standardize best practices, diligently track synergies, and proactively address cost and cultural integration.