Rethinking the M&A process: Learning private equity's secret to outperforming corporate strategic acquirers. Issue 3 (29th March 2022)

• Record Type: Journal Article
• Authors: Gilligan, John; Galpin, Timothy
• Is Part Of: Strategy and leadership. Volume 50:Issue 3(2022)
• Page Start: 21
• Page End: 28
• Publication Date: 2022-03-29
• Subjects: Industrial management -- Periodicals; Strategic planning -- Periodicals; 658.4012
• DOI: 10.1108/SL-03-2022-0015
• Languages: English
• ISSNs: 1087-8572

Abstract

Abstract : Purpose: Although M&A transactions often destroy shareholder value for corporate strategic buyers, PE firms, whose business model is predicated upon repeating M&A, have a better record of creating value for their investors. Design/methodology/approach: The critical aspects that comprise the PE playbook are organized around the three main deal phases Pre-deal, Deal and Post-deal. Findings: Research has found that 60 percent of surveyed strategic buyer executives indicated their companies do not have a comprehensive end-to-end M&A approach using a playbook. Practical/implications: Ample evidence exists demonstrating that corporate strategic buyers experience significant difficulty in creating value from their transactions. Originality/value: Though many view PE firms as value-destroyers, various peer-reviewed studies have found that PE-backed firms have a surprisingly favorable record.