In an economic environment where industrials are feeling the pinch, operational efficiency and effectiveness are as crucial as ever to achieve. And when it comes to integrating acquisitions, success is mixed.
Synergies may justify valuations, but they pose serious challenges to realize. More than three-quarters of companies say they can’t reach return thresholds on M&A transactions without including synergies, but only a minuscule number find realizing these synergies straightforward.
Corporate development executives are stuck between a rock and hard place—the current M&A market is overvalued, but boards and shareholders look to them to complete deals to meet growth targets. And the importance of getting deals right has never been higher.