A FRESH LOOK AT THE M&A LANDSCAPE Twenty years ago, a group of experts from Bain wrote a book that revealed a disappointing fact. Companies were investing billions every year in deals, yet 70% of mergers and acquisitions resulted in failure. Recently one of the book’s authors, David Harding, and two Bain colleagues decided to take a fresh look at the M&A landscape. What they found surprised them. Over the past 20 years, firms have done more than 660,000 acquisitions, but the odds of failure have inverted: Today, close to 70% of mergers succeed. So, what has changed? Find out the four reasons in this Harvard Business Review article: https://lnkd.in/eTB4pmit
Bain & Company Nordics’ Post
More Relevant Posts
-
Board Member | Managing Director | McKinsey alumni | Company builder | Change Manager | Digital Transformation Expert | Real Estate Professional | Innovation Leader | People Manager | Attorney-at-Law
Two decades ago, Bain & Company’s research painted a grim picture: 70% of mergers and acquisitions failed, despite companies pouring billions into them. Fast forward to today, and the tide has turned... Interestingly, out of over 660,000 acquisitions worth $56 trillion in the past 20 years, nearly 70% have succeeded. This article shares a compelling read looking into how this dramatic shift happened. #MergersAndAcquisitions #BusinessStrategy #Success
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
-
M&A Success Reversed! Discover how the once grim 70% failure rate in mergers and acquisitions has flipped to a 70% success rate over the past 20 years. Bain & Company’s research reveals that firms have completed a staggering 660,000 acquisitions, totaling $56 trillion. Dive into the article for the four key reasons behind this remarkable turnaround. #MergersAndAcquisitions #BusinessSuccess
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
-
Interesting recent HBR article on the value realized from M&A, success / failure trends from dealmaking, and some supporting rationale for the shift in trends. “Over the past 20 years, firms have done more than 660,000 acquisitions, worth a total of $56 trillion, with deals reaching a peak in 2021. But the odds of failure have inverted: Today, close to 70% of mergers succeed. Even among the roughly 30% that were less successful, many of the deals still created some value.”
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
-
70% of mergers and acquisitions fail. Or do they? A new study shows that some companies have found ways to flip the script. Bain & Company’s latest research, highlighted in the most recent issue of the Harvard Business Review, identifies four areas of focus developed by the best acquirers over the past 20 years. The article includes an interview with Carlisle Companies Incorporated's CEO Chris Koch as he describes Carlisle’s strategic approach to M&A. https://ow.ly/Wqk450S7sGy
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
-
Advisor-Blue Valley Capital LLC| M&A- Specialized Sell Side Advisor for Wire Harnessing and Cable Assembly Manufactures. Turning Dreams into Deals.
A good read recently published in HBR: Twenty years ago, consultants at Bain & Company published a book that explored a dispiriting reality: Although companies spent billions of dollars a year pursuing deals, 70% of mergers and acquisitions wound up as failures. But today those odds have inverted. According to new research by Bain, over the past 20 years firms have done more than 660,000 acquisitions, worth a total of $56 trillion, with deals reaching a peak in 2021. And close to 70% of them have succeeded. Even among the roughly 30% that were less successful, many of the deals still created some value. What has changed? This article presents four explanations for the turnabout.
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
-
Strategic CIO | CISO / Cybersecurity | Business Partner | Digital Transformation Leader | Trusted Advisor | Growth Enabler
Did you know that 20 years ago a whopping 70% of mergers and acquisitions wound up as failures? It's pretty surprising—espeically now that roughly 70% of acquisitions end up succeeding now. So what changed? Well, there's a few things: ➡️ Acquiring companies use M&A to pursue a broader range of strategies. ➡️ Acquirers are more sophisticated about due diligence. ➡️ Acquiring companies gain experience and expertise by doing more deals. ➡️ Acquiring companies are better at integration. I think it really comes down to acquiring companies just being more intentional and strategic with their acquisitions. They're better at working with the companies they're acquiring to find a solution that works for everyone, rather than forcing the company they work with to completely assimilate into their company culture. Taking a more integrative approach tends to have better outcomes for everyone involved. #MergersAndAcquisitions #AcquisitionStrategy #BusinessIntegration
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
-
Did you know that nearly 70% of the 660,000 acquisitions made in the last two decades have succeeded? This is a significant shift from twenty years ago when 70% of mergers and acquisitions failed despite billions of dollars being spent on them. So, what's changed? Check out this recent HBR article for four key reasons for the turnaround, including looking beyond acquiring competitors, making due diligence about more than financials, building an M&A muscle through repeated activity, and prioritizing integration. If your job involves M&A, this is a must-read! #mergersandacquisitions #businessstrategy #success #HBR
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
-
Transforming M&A Outcomes: A New Era of Success 🔍 We are excited to share a pivotal Harvard Business Review resource titled "A Better Approach to Mergers and Acquisitions." This insightful article reveals how the M&A landscape has dramatically improved over the past two decades, with success rates flipping from a dismal 30% to an impressive 70%. 🚀 The piece dives into strategic innovations and enhanced due diligence practices that have revolutionized the approach to mergers and acquisitions, offering valuable lessons for businesses looking to grow through M&A. 💡 At Apex GTS, we align closely with these evolving strategies, enhancing our advisory services to help clients navigate the complexities of M&A with greater confidence and success. Let’s discuss how these insights can be integrated into your growth strategy! #MergersAndAcquisitions #BusinessStrategy #ApexGTS #HBR
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
-
CFO @ Backbase | FinTech | Generating Meaningful Business Outcomes | Unlocking Success: Empowering M&A, Transformation and Growth in Evolving Markets
Over two decades ago, Bain & Company consultants shed light on a sobering reality: Despite substantial investments, 70% of mergers and acquisitions ended in disappointment. Fast forward to today, and the odds have flipped. With companies executing more than 660,000 acquisitions, what catalysed this dramatic shift? This article delves deeper into the factors behind this transformation, shedding light on how the M&A landscape has evolved. Find out here: #MergersAndAcquisitions #BusinessStrategy #Corporate
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
-
Finally opened the most recent issue of HBR (yes, the print version) and read this insightful article on a better approach to mergers and acquisitions. It's exciting to see the paradigm shift from mostly failures to mostly success in post-merger integration work. Our approach always begins with defining clear goals and operationalizing the investment hypothesis into a solid plan, focusing on both growth and efficiency workstreams. We regularly handle smaller acquisitions, emphasizing the importance of experienced teams in managing integrations effectively. The emphasis on additional due diligence in the article aligns perfectly with our holistic due diligence approach for clients. Excited to hear thoughts from industry experts: Jason Woon, Bryan Graiff, Jason Buhlinger, CPA/ABV, CVA, CFE, Dan Schoenleber, Daniel Pannone, CPA, CFE, Brett Logan, and Brett Currier. What's your take on this read? Read more: https://lnkd.in/ggJc3wpa
A Better Approach to Mergers and Acquisitions
hbr.org
To view or add a comment, sign in
24,184 followers