Research conducted by KPMG indicates an overwhelming majority of 83 percent of mergers & acquisitions fail to enhance stockholder value. The Big 5 firm studied 700 of the most successful, international M&A acquisitions during a two-year period.
An additional set of interviews with corporate executives helped the firm make a recommendation that solid acquisitions include a combination of "soft" and "hard" factors.
Hard keys include synergy evaluation or business fit, integration planning and due diligence, while the soft areas include management team selection, cultural issues and communications with employees, shareholders and vendors.
A KPMG spokesperson commented that the best acquisitions include a combination of high-touch and timely business decisions.
A full copy of the report, "Mergers & Acquisitions - a Global Research Report" is available for download in Adobe Acrobat.