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Mergers and acquisitions

How to get the best value out of your deal

Mergers and acquisitions are risky. More of them would succeed if dealmakers paid closer attention to intangible assets. Accounting for up to three-quarters of a company’s value, assets like customer loyalty, brand value and culture can evaporate fast if not carefully handled. We know how to help you hold on to this value.

How to ensure your M&A deal creates value

When mergers and acquisitions go right, there are rich rewards for everyone involved. When they fail, they destroy value in a big way. In fact, research shows that nearly two-thirds of M&As  fail. Given how complex and risky M&A can be, what can you do to give your deal the best chance of success?

David Derain

"Companies tend to concentrate on integrating tangible assets and on achieving cost synergies, to the detriment of their customers"

  • David Derain , Global managing director, business solutions and building effective organizations -
  • Hay Group

We say: look at the things you can’t touch. ‘Intangible’ assets  – like culture, brand, customer loyalty and employee engagement – can make up 75 percent of a company’s value*. This value can quickly degrade during M&A, for example if uncertainty damages employee morale and customer trust. If these assets are given proper attention right from the start, the deal is much more likely to fly. Yet it’s often the case that companies concentrate more on bringing together tangible assets like IT, property and finance systems.

*Source: Ocean Tomo LLC

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