Challenges
Despite research showing that most mergers and acquisitions (M&A) fail to create value for the acquirer's shareholders, they remain an important part of any company's long-term value-creation strategy. The benefits of a well-thought-out M&A strategy can be a source of competitive advantage—especially in turbulent times. There are several key questions companies should think about as they define their approach to M&A:
What levers can I pull to create value from the acquisitions I pursue?
How can I take advantage of the current market conditions through M&A transactions?
How can I identify untapped opportunities in developing markets?
How do I manage the execution of the deals I pursue?
How can I make M&A an integral part of my strategic planning?
BCG Competencies
BCG operates as an objective, fact-based partner that can help ensure a company's M&A plan is the result of a carefully developed corporate strategy—not simply a reaction to external pressure to do a deal. Our approach is strategy driven, not deal driven, and we reserve the freedom to say no to a deal. We support our clients during every step of the M&A process:
Developing the strategic logic for acquisition
Screening potential targets
Estimating likely sources of value creation
Providing support in the negotiations, bidding, and final decision (including legal and regulatory requirements)
Implementing the subsequent postmerger integration
Our practice consists of more than 130 partners and 700 trained professionals at all BCG levels worldwide, all with significant experience in corporate development and corporate finance. Specifically, our corporate-finance task force and cadre and our Value Science Center—a dedicated global group of more than 100 specialists—provide comprehensive support for our clients.