Our Leading Research on M&A
We have conducted a new study of mergers & acquisitions in 2011. Having studied 320 transactions across eight industry sectors (chemicals, consumer staples, electric utilities, healthcare, industrials, information technology, media, and retail), we conclude that deals made with a capabilities perspective produce annual returns a full 12 percentage points higher than acquisitions with limited capabilities fit. Even during the difficult years since the 2008 economic crisis, deals linked to a capabilities-driven strategy have tended to increase shareholder value for the acquiring company – while most other inorganic moves have led to a loss of value. All industries we studied show a consistent, observable capabilities premium in M&A.
Mergercast – Episode 39
The Capabilities Premium in M&A, Part 1
In this first episode in a two-part series, Gerald Adolph, Senior Partner and leader of Booz & Company's Mergers and Restructuring group, interviews J. Neely, a Partner at the firm, about new Booz & Company research finding that transactions designed to enhance or leverage companies' core capabilities outperformed other deals. The premium was on average 12 percentage points in terms of shareholder return.
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Mergercast – Episode 40
The Capabilities Premium in M&A, Part 2
In this second episode in a two-part series, Gerald Adolph, Senior Partner and leader of Booz & Company's Mergers and Restructuring group, continues his interview with J. Neely, a Partner at the firm, about new Booz & Company research finding that transactions designed to enhance or leverage companies' core capabilities outperformed other deals. They explore some specific cases where capabilities took center stage, looking at companies including Danaher Corp., Li & Fung Ltd. and Walgreen Co.
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