In mature industries, M&A is often seen as a route to accelerated growth, and there are many examples of businesses successfully pursuing this as a growth strategy. But achieving the desired outcomes proves elusive for many.
In this Executive Insights, L.E.K. Consulting’s Karin von Kienlin and Marc-Antoine Cousin explore the factors that separate success from failure in European M&A. L.E.K. quantified the share of European transactions across all industries that created value over a 10-year period, examined why they have beaten the odds and explained what can be learned from them.
The analysis revealed three key findings, essential to achieving successful M&A transactions:
- Timing: The timing of the deal in the economic cycle has a major impact on performance
- Track record: Experience in conducting a number of transactions is a significant contributor to value creation
- Type: There is a discernible difference in value created from the acquisition of carve-outs compared with stand-alone companies, especially private companies