We all know that large transactions are difficult to complete. That's why it is so important for companies who regularly and systematically pursue moderately sized M&A deliver better shareholder returns than those without such an approach, according to McKinsey research shown in their 2018 report "M&A: The keys to success".
Multiple smaller deals generate more long-term value compared with infrequent big ticket purchases or those done on purpose once every few years - which can actually lead you down the path towards loss instead of profit! This continual stream investment programs – called ‘programmatic merger & acquisition’ - needs only reach particular threshold counts combined yearly values before making it impactful.
Effective deal strategy
The best way to achieve success in M&A is by taking a systematic approach. This means that these 'systematic' acquirers perform better than their peers and earn excess returns because they have closed more deals, it's precisely because these companies are doing deals systematically that we believe will lead them towards building lasting distinctive capabilities.
Mergers and acquisitions are long-term commitments that must be persisted with if one wants to maximize their outcomes. This especially applies for buyers who frequently underestimate the amount of work involved in the due diligence process, as well as integrating assets after deal making is complete-especially from inexperienced players who can't seem to get things done quick enough!
Just as a company's overall strategy needs to be treated with care and attention, so too does its deal-strategy. Deal strategies optimize information flows in order for the organization achieve their goals; just like other forms of optimization, this is done through maintaining an ever flowing state rather than exposing it at any one moment or event where things can go wrong because there will always come another opportunity where you might have been lax enough that someone else takes advantage instead!
The post-COVID pandemic has caused a hunger in the acquisition market, and buyers are looking for any way they can get their hands on innovative tech or buyouts from competitors who haven't weathered it. But be careful: you don’t need billions of dollars worth of purchases to make improvements over time! Building up your own company organically will only take someone so far; regular bolt-on as well as small to moderate sized acquisitions are critical if you want long term growth with no stagnation along the way!