Practus’ Post

📊 Step-by-Step M&A Process: From initial planning and valuation to final integration, the M&A process is complex but rewarding. Discover how companies create synergies and drive growth through M&A.  #TechMergers #ITAcquisition #MergersAndAcquisitions

Twenty years ago, the narrative around mergers and acquisitions was largely pessimistic. Historical data and academic studies, including insights from Bain & Company's seminal work, "Mastering the Merger," highlighted a stark reality: 70% of M&As failed to meet expectations.   Fast forward to today, and the scenario has dramatically shifted. Recent findings by Bain & Company reveal an impressive turnaround—with 70% of M&As now considered successful. This remarkable improvement is attributed to several key shifts that can be seen below. 👇   Observing these trends, it's clear that the approach to M&A has matured significantly. The emphasis on strategic alignment, thorough due diligence, and professional integration management has turned what was once seen as a risky gamble into a calculated growth lever.   Interested in the transformative journey of M&A? Lets connect!   #MergersAndAcquisitions #BusinessStrategy #CorporateGrowth #Innovation

Positive forecasts from industry leaders such as KPMG US, Bain Capital Ventures, and Deloitte Insights, along with lots of dry powder on hand, suggest that an acceleration of M&A is on the horizon for 2024. Find out what the driving factors are. #M&A #MergerAcquisitions #Technology #DeepTech https://lnkd.in/e5UbZg4Y

McKinsey: How private equity funds can use M&A to create outsized returns Add-on M&A is the answer! 📍 Interesting: McKinsey says 'Attracting and retaining talent' is a key reason for add-on acquisitions! M&A creates scale and that creates career opportunities for portco managers. People with roll-up/add-on M&A experience in PE portcos are sought after in the market. I've personally helped clients make such hires. McKinsey recommends 5 steps to make add-on M&A work: ✅ Front-load acquisitions ✅ Focus on top value drivers ✅ Build a repeatable process ✅ Rigorously track value delivery ✅ Build sustaining M&A capabilities The last point is key in my opinion: Repetition builds competence. You learn more by doing 10 small deals than 1 big deal. Do you agree with me/ what are your thoughts on the McKinsey article? Link to article in the comments!

Effective acquisitions are not just about the deal; they're about the people. TalentSherpa reveals how a robust Project Management Office (PMO) and clear process flows can steer your M&A to success, with human capital at the helm. Elevate your strategy for transformative results. Learn more: https://buff.ly/3uXhtBK #ProjectManagement #BusinessIntegration #AcquisitionStrategy

McKinsey & Company's latest insights on the top M&A trends in 2024 offer a blueprint for success in the next wave of deals 👇 #technology #manda ##business #report

In case you missed it, I recently had the opportunity to share my thoughts with Fast Company on why we need to rethink the traditional M&A playbook in the light of today's rapidly evolving world of innovation.   My top three takeaways?   📈 M&A alone isn’t enough for sustainable growth anymore 🤝 Partnerships and ecosystems are now key to staying ahead of the curve 💡 Embracing agility and fostering constant innovation have become non-negotiable   I’d love to hear how you’re approaching growth and innovation in this dynamic environment. What strategies are working for you? Discover more insights here: https://lnkd.in/eNrHcSir   #mergersandacquisitions #Innovation #BetterWorkingWorld

In the world of IT, especially M&A integrations, "weirdness" is almost guaranteed. The key is to embrace the unexpected, think creatively, and find solutions that might seem unconventional at first. After all, sometimes the most innovative ideas come from challenging the status quo! #ITProjectManagement #MergersandAcquisitions #CalvinandHobbes

The Asia-Pacific region has been a powerhouse in global M&A, representing 25% of total transaction value and nearly 40% of global deals over the past decade. However, the region still struggles with effective post-merger integration, impacting value creation and transaction success. Check out this excellent report from Jared Bennett Feiger and Nidhi Meppadan as they delve into AP's comparative performance and examine the challenges in achieving successful integration: https://lnkd.in/gSTwVEb8 Boston Consulting Group (BCG) #StrategicObjectives #AsiaPacific #MergersAndAcquisitions

The Evolution of M&A Success Rates: A 20-Year Transformation Twenty years ago, Bain & Company's book Mastering the Merger revealed a sobering fact: 70% of mergers and acquisitions (M&A) failed. However, recent findings by Bain’s David Harding and colleagues show a dramatic shift—today, nearly 70% of mergers succeed. Here's what has changed: 1. Diversified M&A Strategies: Companies now pursue broader goals like entering new industries, improving supply chains, and acquiring AI capabilities, reducing reliance on cost-saving measures. 2. Enhanced Due Diligence: Modern due diligence includes cultural assessments, talent evaluations, and social media feedback, providing a comprehensive understanding of target companies. 3. Accumulated Experience: Frequent, smaller transactions have honed companies' M&A skills, leading to better synergy estimation and integration. 4. Improved Integration: Advances in project management tools and techniques have significantly improved integration processes. Despite the historical failure rate, frequent acquirers have shown higher shareholder returns. As more companies adopt repeatable M&A models, success rates may continue to rise. Chris Koch, CEO of Carlisle Companies, emphasizes the importance of a well-defined process, thorough due diligence, and focusing on growth opportunities and synergies for successful M&A. The shift from a 70% failure rate to a 70% success rate in M&A over the past 20 years highlights the impact of a disciplined, informed, and experienced approach. As these best practices spread, the overall success rate is likely to improve further. #MergersAndAcquisitions #BusinessStrategy #CorporateGrowth #BainAndCompany #M&ASuccess #BusinessInsights #harvardbusinessreview #masteringthemerger