Increasing shareholder value is the primary objective. However, research shows that most companies fall short capturing or creating value trough their M&A deals. According to various independent sources, 70–80% of companies experience the opposite – a loss in shareholder value following a merger and acquisition deal.
Research of developed markets conducted by PricewaterhouseCoopers revealed that increasing the effectiveness of an M&A deal directly depends on fulfilling well defined and prioritised integration initiatives in a timely manner. The survey further indicated that the first 100 days after deal closure are critical to realising opportunities for profit growth, increased productivity and improved cash flow.
PricewaterhouseCoopers interviewed a number of top managers from companies operating in Russia on their latest deals both in the country and abroad, and about the integration process resulting from these deals.Among these managers were representatives from major Russian companies and local branches of international companies.
This paper presents observations on how a deal's effectiveness depends on the completion of integration objectives and is based on PricewaterhouseCoopers’ international survey of developed markets and interviews conducted in Russia.
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