While one plus one generally equals two in math class, the same cannot always be said in the complex world of mergers and acquisitions.
While mergers and acquisitions (M&A) are a practical option for achieving growth, especially in slower markets, the value garnered from these deals is not always that which is intended or expected.
According to KPMG Research, more than two-thirds of North American M&A deals fail to deliver value to the acquirer. In fact an astounding 39 percent reduced value.
This issue of Insights into Mining explores the various areas where post-merger value erosion occurs and provides some guidance for setting your team up for success during the planning and execution phases.
© 2017 KPMG LLP, a Canada limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.