Global deals value in 2018 reached their second highest value since the 2008 financial crisis, driven by robust global demand for assets by both private equity and corporate buyers. There has however been a decline in the volume of winning deals, those that create significant value relative to the purchase price.
We surveyed 100 private equity partners globally and asked about their experiences with value creation to understand how they realise maximum value in their deals. We uncovered that whilst investment capacity at private equity is at an all-time high, cost-cutting is no longer enough to drive returns in today's tough market environment.
What if you looked at your M&A differently?
Similar to our corporate survey, our research found that if dealmakers were to do their deal again, they would prioritise value creation earlier.
Conversely, respondents state that rebranding and operating model changes should not have been day one priorities. So, what makes a good value creation plan? All plans aren't created equal and so it is crucial that the levers for realising the blueprint are comprehensive, covering: target operating model, culture, and consideration of tax, to name a few.
What were your priorities on Day One and what should they have been?