|
AltAssets is the private equity news and research service from Almeida Capital
|
|
|
PRINT THIS PAGE M&A team benchmarking13/06/2007. Source: KPMG. 
From time to time, M&A teams have asked KPMG how they compare with others they have worked with. It is clearly helpful for decision makers to understand more about the composition and activities of M&A departments across the world in order that they can compare their own team with those of others in a similar size company, the same geography or the same sector. This KPMG study is intended as a tool for such benchmarking, as well as creating a platform for discussions among M&A professionals worldwide. Here are some areas we found particularly interesting.
1. Deal origination
Almost 80 percent of transaction opportunities are originated inside the company rather than externally. Even in companies with turnover greater than U.S.$5 billion, less than 20 percent of deals are originated by intermediaries.
2. Turning deal opportunities into transactions
The average M&A team sees about 48 new deal opportunities per year and closes about a tenth of these. Around 40 percent of deals pass through each of the three key stages of the deal process.
3. Cost of external advice
Companies spend an average of U.S.$10.6 million a year on external advisor’s fees. About 80 percent of this is for investment bankers, lawyers and transaction services. How can M&A teams make better use of their advisors?
4. Post-transaction evaluation
The vast majority of our respondents believe that they have efficient deal processes but only 53 percent conduct post-transaction assessments and only 39 percent formally grade the success of their performance on an individual deal basis.
5. Accountability for deal success
Nearly half of respondents say that M&A staff are held accountable for the success of the deal, yet they only have 22 percent of responsibility for integration – a process vital for deal success.
Click here to view the full article (pdf 1000kb) You need Adobe Acrobat to read this document. If you do not have it, you can download it free from www.adobe.com/products/acrobat/readstep.html
KPMG is the global network of professional services firms who provide audit, tax and advisory services. KPMG LLP operates from 22 offices across the UK with 9,000 partners and staff. KPMG recorded a UK fee income of £1,066 million in the year ended September 2004. KPMG LLP, a UK limited liability partnership, is the UK member firm of KPMG International, a Swiss cooperative.
|
 
|
|
|
