How you should align your acquisition approach with your growth strategy

Customizing M&A diligence and integration priorities to a specific deal rationale promotes long-term growth.

Companies often apply the same M&A diligence and integration playbooks to all deals, rather than tailoring activities to the strategic rationale behind the particular transaction.

As more than half (52%) of companies expect to actively pursue M&A in the next 12 months, according to the EY Global Capital Confidence Barometer survey, it’s critical for them to align their deal processes with their growth strategies, whether it’s to acquire new capabilities, consolidate or grow their products or their market share.

In the recent EY Buy & Integrate global pulse survey focused on the acquisition process, inadequate diligence was noted as a major challenge to achieving the targeted deal value.

Of the 300 chief financial officers, chief operating officers and corporate development officers who participated, 25% cited this as a key challenge, second only to regulatory and geopolitical issues (37%).

The full article can be accessed here.

EY Law key contacts:

Jean-Christophe Sabourin

EY Global Transaction Law Leader

Paul Devitt

EY Legal Due Diligence Leader

Paula Hogéus

EY Global Labor & Employment Law and Workforce Transformation Leader