Seven steps for highly effective deal making


Most acquisitions and divestments don’t maximize value — even when some deal makers think they do. Yet creating lasting value in deals has never been more important than it is today. What ultimately makes the difference in maximizing value?

In an effort to provide an answer to that question, PwC worked in conjunction with Mergermarket, a research firm, to survey 600 senior corporate executives around the world about their experiences of creating value through mergers and acquisitions (M&A).

All had made at least one significant acquisition and one significant divestment in the previous 36 months. In addition, Cass Business School was engaged to compare M&A performance based on eight years’ worth of deals data.

The message that came back was clear: Companies that prioritize value creation early on — rather than assuming it will happen as a natural consequence of the actions they take as the transaction proceeds — have a better track record of maximizing value in a deal.

Indeed, we found that acquirers that prioritize value creation at the outset can outperform peers by as much as 14 percent (see “Value creation needs a broader and more intense focus”).

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