Global businesses are not realising the full potential of cross-border mergers and acquisitions (M&A) as a means of driving growth due to weaknesses in the deal process.

These are the findings of our new global study, The M&A Blueprint: From Inception to Integration. Published recently, it shows that deal teams need a more holistic approach and stronger connections between the planning, completion and post-deal integration phases.

  • study surveys 400 businesses (including Energy and Utility companies) across 41 countries
  • 50% of M&A deals done by Energy companies involve the legal team “before due diligence”, compared to 90% in banking
  • 10% of Energy companies surveyed said integration did not go as expected at the time of the deal closure

The report is the result of an in-depth study of 400 businesses from 41 different countries, which have done at least one cross-border M&A deal worth over $100 million in the past three years. The findings show that global businesses are giving little or no focus to integration beyond the deal transaction and deal teams need stronger connections between the planning, completion and post-deal integration phases.

While we understand that the current economic climate has made the business of doing deals much tougher, company boards are under pressure to secure growth and M&A is an essential business tool for achieving this.

The M&A Blueprint: From Inception to Integration report shows that key to the success of a cross-border deal is the presence of a core team who can provide the ‘connective tissue’ to link all the phases together, taking the deal from the inception stage through to post-completion integration. It is clear that businesses need to start joining the dots between the different stages of the deal cycle to move the focus from just simply ‘doing the deal’ to thinking about life for the business beyond the deal.

“The expectation of management is important as acquisitions will normally take more time, are more expensive and exhaustive than expected. In general, M&A transactions tend to be exciting, interesting projects and one learns a lot with regard to cultures and other companies. One take away is that creative solutions are frequently needed and for most of the problems a solution can be found.”

General Counsel, Energy, Middle East

The report also shows that many businesses know they can do better and want to see best practice in action on each and every transaction. So, with the publication of this report we produced the blueprint for success in cross-border deals as identified by deal-makers themselves.

To request a copy of the full report and blueprint please visit our website.

In addition, we will soon be releasing a benchmarking tool to help you and your organisation benchmark yourselves against other organisations in your sector or region.