Although M&A transactions often destroy shareholder value for corporate strategic buyers, PE firms, whose business model is predicated upon repeating M&A, have a better record of creating value for their investors.
The critical aspects that comprise the PE playbook are organized around the three main deal phases Pre-deal, Deal and Post-deal.
Research has found that 60 percent of surveyed strategic buyer executives indicated their companies do not have a comprehensive end-to-end M&A approach using a playbook.
Ample evidence exists demonstrating that corporate strategic buyers experience significant difficulty in creating value from their transactions.
Though many view PE firms as value-destroyers, various peer-reviewed studies have found that PE-backed firms have a surprisingly favorable record.
Gilligan, J. and Galpin, T. (2022), "Rethinking the M&A process: Learning private equity’s secret to outperforming corporate strategic acquirers", Strategy & Leadership, Vol. 50 No. 3, pp. 21-28. https://doi.org/10.1108/SL-03-2022-0015
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