Why Strategic Acquisitions Fail to Enhance Shareholder Value

If you were to ask a corporate executive, “did your recent acquisition create or destroy shareholder value,” you may be surprised at their response. Recently, KPMG commissioned a global study which indicated that 69% of surveyed corporate buyers did not enhance shareholder value from acquisitions made over a 2 ½ year period.   My experiences over the years representing both buyers and sellers give me considerable insight into why some acquirers are able to enhance shareholder value, while others fail. In this article, I will focus on some of the key factors that may hurt the outcome of your transactions; however, the good news is that all of these factors can be overcome with proper planning and organization. Continue reading