Staying on courseM&A in Europe, trends, strategies and success factors |
This study – a joint effort of the M&A practices of Deloitte Denmark, Belgium, Central Europe, Germany and the Netherlands – shows that European executives remain upbeat about their M&A plans, focusing above all on improving their competitive position and expanding their business geographically. While financial investors are understandably cautious, the majority of corporate acquirers who responded are planning to accelerate the pace of activity over the next 18 months. Western and Eastern European targets are a main focus, with Russia and Asia gaining in importance.
Globalization and the rapid rise of emerging markets are clearly affecting businesses in many ways. Few companies manage to make the journey without engaging in successful relationships with companies abroad. Cross-border acquisitions will likely make up a rising share of transactions in coming years. In Europe, over half of all transactions already involve a company in a foreign country.
But creating international business relationships brings with it its own set of challenges and risks. Add to it a rising awareness about environmental and social responsibility of corporations and it becomes clear that companies need to sharpen their senses in many regards before engaging in M&A.
The analysis of factors that most contribute to successfull transactions according to respondents to this survey found that emphasis on certain “non-traditional” aspects of M&A corresponds to a significant improvement in performance. Next to an obvious focus on accounting and finance, high-achievers put extra emphasis on topics such as due diligence of environmental and regulatory issues, as well as the implementation of a consistent HR strategy and cultural integration. There are still things to learn from best practice!
Page Last Updated
Staying on course, M&A in Europe, Trends – Strategies – Success Factors
(1755.69 KB)