Winning in M&A: Best practices from leading consumer companies
Winning in M&A: Best practices from leading consumer companies

Winning in M&A: Best practices from leading consumer companies

Discover these commonly overlooked tactics that foster synergy and generate new shareholder value following an acquisitions deal.

With organic growth slowing at consumer companies in recent years, many have pursued acquisitions to create new shareholder value, with varying degrees of success. What makes one deal realize investor expectations and another miss the mark? KPMG research shows that the ultimate success of an M&A transaction depends on seemingly common-sense tactics that many companies neglect once the deal is done.

Our examination of a variety of public information – including SEC filings, analyst reports, press releases, earning calls, and annual reports – revealed that companies in the top quartile of performance engage in at least one of three important actions, with the most successful engaging in all three. They are following:

Announce details of synergy expectations and plans before the transaction close. Evidence of the buyer’s due diligence reassures investors and helps stabilize the stock price during integration and saves time and resources needed post transaction.

Publicly track and report synergy progress post acquisition. These efforts help investors understand the deal’s value in real time and help company leaders quickly adjust the synergy plan as needed.

Capture a significant portion of synergies quickly, usually within the first year. Early wins highlight the company’s understanding of the deal’s value proposition, create market confidence in long-term success, and energize management and employees to tackle important next steps.

Five leading practices can help companies attain the post deal synergies needed to make the deal a success. Leaders:

  1. Move fast: Take control of the new asset quickly to unlock synergies before “business as usual” activities prevail

  2. Be ambitious: Identify risks early and develop appropriate contingency plans to exceed expectations

  3. Use data and analytics: Dive deep to extract insights into business performance drivers and validate key assumptions

  4. Develop robust governance: Establish detailed work plans and clear responsibilities to keep delivery on track

  5. Measure results: Track KPIs to measure success and identify roadblocks quickly to enable confident public reporting.

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