PRINT THIS PAGE The morning after: driving for post deal success29/08/2007. Source: KPMG. 
Many CEOs and CFOs may be familiar with that 'morning after' feeling when the intensity of the deal negotiations are finally behind them, says KPMG. Rather than relief and celebration, there is a realisation of the enormity of the task ahead, and pressing questions can include: what have I bought and how do I deliver the value paid for? The deal environment has changed significantly in recent years. A greater number of acquisitions are now subject to an auction process. With a more competitive market, higher premiums are being paid and trade buyers may often lose out to Private Equity houses who now account for an increasing proportion of acquisitions. At the same time, the competitive tension of an auction process can limit the amount of information which is available to acquirers before close. This creates additional challenges for CEOs and CFOs in the pre-close period, with a knock-on impact post completion.
Simultaneously, the market continues to professionalize, on both the buy-side and the sell-side and acquirers appear to be undertaking much broader based due diligence than in the past and thinking earlier about their post deal plans. This most recent KPMG’s Transaction Services practice global M&A survey, sets out to understand what acquirers are doing to enhance value from their acquisitions and what challenges they face in taking control of the target business.
The results show that fewer deals reduce value than enhance value, despite increased competition in the M&A market, with 43 percent showing value neutral. We also find some interesting distinctions between the approaches of European acquirers, who appear to be more successful compared with those in the Americas and Asia. For the first time, Private Equity houses have been invited to participate in the survey as well as corporations and the findings highlight some differences in approach to the pre and post-close periods.
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KPMG LLP, the audit, tax and advisory firm (www.us.kpmg.com), is the US member firm of KPMG International. KPMG International's member firms have 103,000 professionals, including 6,700 partners, in 144 countries.
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