Global M&A deal activity indicates that mergers are consistently a focus in inorganic growth strategies. And while deal volumes and values have declined by 22% and 11% respectively in the Americas, we can continue to see a healthy activity momentum and therefore significant opportunities for CXOs.
In fact, as of June 2022, global PE dry powder stood at US $2.3 trillion – three times more than the amount in 2007. This volume can put pressure on dealmakers and management teams. However, it undoubtedly enables CXOs to play a more active role in the deal making process by implementing their own M&A strategy.
“Research shows there is a 50-50 chance that companies pursuing large M&A deals will outperform industry peers.”— McKinsey Global 2,000 research study
Position your Company for M&A Now
Given the transformation that a business will undergo during the M&A process, it is critical to understand your company’s value proposition and how a buyer could potentially expand on its success. For starters, using a value creation-oriented approach, refine your company’s mission statement and vision to help inform the type of growth that will maximize future valuation and drive valuation.
“68% of executives at corporations and PE investors say they are taking a greater interest in international dealmaking over the coming year.”— 2022 Deloitte Future of M&A Trends Survey
When reviewing your strategic roadmap, assess whether your needs could be fulfilled internally or through a strategic pa...