As more acquirers pursue M&A deals geared toward new growth, they simultaneously lack the expertise to assess a target’s capabilities and market potential, as well as the ability to realize the full value potential from their deals. Leveraging routine playbooks, many companies are struggling to realize the expected value of their M&A activities. In 2021, an Accenture study of 800 global M&A transactions found that just 27% resulted in both operating margin improvement and revenue growth.
Our research suggests that four behaviors are crucial to the success of today’s growth-focused deals.
1. Invest in an “always on” M&A capability
Small deals in rapid succession require companies to invest in an always-on M&A capability that allows them to handle and integrate more acquisitions in a shorter time-frame. Creating an always-on capability requires building an operating model specifically designed for M&A. The model should have a comprehensive M&A framework that offers the flexibility to combine different operating models, ways of working, cultures and teams.