Integrating acquisitions

Transcription

1 Integrating acquisitions Survey conducted by the Economist Intelligence Unit on behalf of Accenture April Please estimate the percentage of your company's total global revenue growth that has come from mergers and acquisitions (M&A) in the last three years. 1-0% 16.47% (98) % 52.27% (311) % 18.66% (111) % 5.88% (35) % 2.02% (12) 6 - More than 80% 2.02% (12) 7 - Don't know 2.69% (16) Mean: 2.42 Response: What percentage of your company's total global revenue growth do you expect will come from M&A in the next three years? 1-0% 7.76% (46) % 55.31% (328) % 19.73% (117) % 6.41% (38) % 1.69% (10) 6 - More than 80% 1.18% (7) 7 - Don't know 7.93% (47) Mean: 2.74 Response: 593

2 3. To what extent will your company's divestment activity change in the next three years? 1 - Increase 27.75% (164) 2 - Stay the same 41.29% (244) 3 - Decrease 8.97% (53) 4 - We do not expect any divestment activity in the next three years Mean: 2.25 Response: Which countries do you think will be of greatest interest to your company for M&A activity in the next three years? Select all that apply. North America 22% (130) 1 - Canada 14.53% (43) 2 - US 94.93% (281) Response: 296

3 Latin America 1 - Argentina 17.69% (26) 2 - Brazil 66.67% (98) 3 - Chile 12.24% (18) 4 - Colombia 3.4% (5) 5 - Mexico 37.41% (55) 6 - Peru 6.12% (9) 7 - Venezuela 6.12% (9) 8 - Other 4.08% (6) Response: 147 Europe 1 - France 20.41% (70) 2 - Germany 36.15% (124) 3 - Italy 17.78% (61) 4 - Netherlands 11.37% (39) 5 - Russia 27.99% (96) 6 - Spain 16.62% (57) 7 - UK 35.86% (123) Response: Other 25.95% (89)

4 Asia-Pacific 1 - China 71.87% (281) 2 - India 46.29% (181) 3 - Indonesia 7.67% (30) 4 - Japan 27.11% (106) 5 - South Korea 12.28% (48) 6 - Taiwan 7.67% (30) 7 - Thailand 7.93% (31) 8 - Other 5.37% (21) Response: 391 Middle East and Africa 1 - Algeria 1.02% (1) 2 - Egypt 25.51% (25) 3 - Iran 6.12% (6) 4 - Kuwait 14.29% (14) 5 - Saudi Arabia 28.57% (28) 6 - South Africa 38.78% (38) 7 - UAE 18.37% (18) 8 - Other 15.31% (15) Response: 98

5 5. How would you describe your company s internal capabilities in identifying and executing on crossborder M&A opportunities? 1 We have a clear strategy for the markets we want to enter 2 Within our chosen geographic markets, we have identified specific companies that would be attractive 3 We are satisfied with the rigour and accuracy of our due diligence on companies and markets 4 We are skilled at understanding and managing cultural differences between ourselves and acquisition targets 5 We are able to plan and implement effective organisation design and change-management programmes 6 We have a thorough understanding of what is required to integrate acquisitions in foreign markets 7 Cross-border acquisitions are generally more difficult than acquisitions in our existing markets Response: 586 Stronglyagre e Stronglydisag ree5 Don'tknow Mean 30.09% (176) 40.34% (236) 14.02% (82) 6.67% (39) 3.93% (23) 4.96% (29) % (85) 38.23% (224) 23.04% (135) 8.7% (51) 7.17% (42) 8.36% (49) % (84) 38.46% (225) 26.32% (154) 9.57% (56) 2.91% (17) 8.38% (49) % (60) 31.4% (184) 31.74% (186) 16.21% (95) 5.29% (31) 5.12% (30) % (66) 32.76% (192) 33.45% (196) 14.33% (84) 3.75% (22) 4.44% (26) % (49) 29.06% (170) 32.99% (193) 15.21% (89) 7.69% (45) 6.67% (39) % (211) 27.74% (162) 15.75% (92) 9.59% (56) 3.6% (21) 7.19% (42) 2.38

6 6. Thinking about your company's most recent domestic acquisition, what do you think are the elements most critical to M&A transaction success? Select up to three. 1 - Developing an M&A strategy early on 40.07% (236) 3 - Conducting due diligence 41.77% (246) 5 - Achieving an optimal price 22.58% (133) 7 - Orchestrating and executing the integration process 52.97% (312) 9 - Other, please specify 2.89% (17) Response: Skillfully identifying, screening and prioritising targets 36.84% (217) 4 - Leading negotiations 14.09% (83) 6 - Energising the organisation and understanding cultural issues 31.24% (184) 8 - Not applicable 10.87% (64) 7. Thinking about your company's most recent cross-border acquisition, what do you think are the elements most critical to M&A transaction success? Select up to three. 1 - Developing an M&A strategy early on 23.65% (136) 3 - Conducting due diligence 34.09% (196) 2 - Skillfully identifying, screening and prioritising targets 25.57% (147) 4 - Leading negotiations 10.09% (58) 5 - Achieving an optimal price 14.09% (81) 6 - Energising the organisation and understanding cultural issues 7 - Orchestrating and executing the integration process 37.22% (214) 9 - Other, please specify 2.61% (15) Response: Not applicable--we have not had any crossborder transactions 33.04% (190) 32% (184)

7 8. Thinking about your company's most recent domestic acquisition, what do you think are the elements most critical to successful integration of the acquired company? Select up to three. 1 - Establishing clear organisational structure and accountabilities 50.85% (299) 2 - Using clean room/clean team process to accelerate pre-close integration planning 3 - Conveying a sense of urgency 7.99% (47) 4 - Having commitment and leadership from top management 5 - Addressing cultural integration issues 26.02% (153) 7 - Having a good communication strategy 29.08% (171) 9 - Establishing strong programme management and risk management processes 17.69% (104) 6 - Having clear strategic rationale for making the deal 8 - Developing a comprehensive integration master plan 8.33% (49) 40.48% (238) 31.29% (184) 28.74% (169) 10 - Dedicating resources without conflicts 7.31% (43) 11 - Not applicable 11.22% (66) 12 - Other, please specify 2.21% (13) Response: Thinking about your company's most recent cross-border acquisition, what do you think are the elements most critical to successful integration of the acquired company? Select up to three. 1 - Establishing clear organisational structure and accountabilities 31.64% (181) 2 - Using clean room/clean team process to accelerate pre-close integration planning 3 - Conveying a sense of urgency 6.12% (35) 4 - Having commitment and leadership from top management 5 - Addressing cultural integration issues 31.47% (180) 7 - Having a good communication strategy 24.13% (138) 9 - Establishing strong programme management and risk management processes 11 - Not applicable--we have not had any crossborder transactions Response: Having clear strategic rationale for making the deal 8 - Developing a comprehensive integration master plan 4.02% (23) 30.24% (173) 20.1% (115) 18.36% (105) 11.54% (66) 10 - Dedicating resources without conflicts 7.52% (43) 33.22% (190) 12 - Other, please specify 2.1% (12)

8 10. Was your company's most recent acquisition domestic or cross-border? 1 - Domestic 51.96% (305) 3 - We have not made an acquisition 8.35% (49) Mean: 1.56 Response: Cross-border 39.69% (233) 11. Thinking about your company s most recent acquisition, please indicate your level of agreement with the following statements. 1 Valuable employees from target company were retained 2 Valuable employees from acquirer were retained 3 Customers of target did not experience any negative impact 4 Customers of acquirer did not experience any negative impact 5 Expected cost synergies were achieved 6 Expected revenue synergies were achieved 7 Integration completed as quickly as possible with minimal distress Response: 580 Stronglyagre e Stronglydisag ree5 Don'tknow Mean 41% (237) 31.66% (183) 10.55% (61) 5.88% (34) 2.77% (16) 8.13% (47) % (251) 32.12% (186) 11.74% (68) 2.42% (14) 1.55% (9) 8.81% (51) % (170) 36.33% (210) 17.82% (103) 6.92% (40) 1.04% (6) 8.48% (49) % (218) 35.99% (208) 13.84% (80) 4.15% (24) 0.87% (5) 7.44% (43) % (86) 33.28% (192) 25.3% (146) 10.4% (60) 2.43% (14) 13.69% (79) % (89) 38.86% (225) 22.8% (132) 7.08% (41) 2.94% (17) 12.95% (75) % (88) 29.19% (169) 27.98% (162) 14.16% (82) 4.66% (27) 8.81% (51) 2.9

9 12. Thinking specifically about IT integration of acquired companies, how successful has IT integration been in your domestic and cross-border transactions? 1 IT integration in domestic transactions 2 IT integration in cross-border transactions Response: 584 Successful Unsuccessful 5 Don t Know/ Not applicable Mean 14.24% (82) 31.6% (182) 22.92% (132) 7.47% (43) 2.26% (13) 21.53% (124) % (41) 15.73% (90) 19.93% (114) 11.71% (67) 3.5% (20) 41.96% (240) Please indicate the most successful IT factors in your company's most recent acquisition. Select up to two. 1 - Involving IT before closing the deal 29.05% (165) 3 - Funding the IT integration with adequate resources 21.48% (122) 2 - IT operations and application delivery 13.2% (75) 4 - Using interim bridging solutions 18.84% (107) 5 - Successfully integrating cultures 15.85% (90) 6 - Successfully managing programmes 19.19% (109) 7 - Using a specialised outside consultant 3.17% (18) 8 - Establishing infrastructure compatibility 27.82% (158) 9 - Don't know 21.65% (123) Response: 568

10 14. Please indicate the least successful IT factors in your company's most recent acquisition. Select up to two. 1 - Involving IT before closing the deal 16.4% (92) 2 - IT operations and application delivery 14.26% (80) 3 - Funding the IT integration with adequate resources 16.22% (91) 4 - Using interim bridging solutions 17.65% (99) 5 - Successfully integrating cultures 17.11% (96) 6 - Successfully managing programmes 11.59% (65) 7 - Using a specialised outside consultant 16.58% (93) 8 - Establishing infrastructure compatibility 14.26% (80) 9 - Don't know 30.12% (169) Response: What are the top challenges for companies in your country making domestic acquisitions? Select up to three. 1 - Conducting due diligence 22.55% (131) 2 - Agreeing on price 33.22% (193) 3 - Arranging financing 9.98% (58) 4 - Obtaining shareholder approval 18.24% (106) 5 - Legal and regulatory compliance 29.6% (172) 6 - Achieving cost savings through headcount reduction 7 - Achieving cost savings through other operational streamlining 30.98% (180) 9 - Retaining key employees 30.12% (175) Response: Achieving revenue growth through new product introductions 33.05% (192) 24.78% (144) 10 - Integrating local management 32.87% (191)

11 18. What are the top challenges for companies in your country making cross-border acquisitions? Select up to three. 1 - Conducting due diligence 40.79% (228) 2 - Agreeing on price 25.76% (144) 3 - Arranging financing 9.48% (53) 4 - Obtaining shareholder approval 16.46% (92) 5 - Legal and regulatory compliance 44.54% (249) 7 - Achieving cost savings through other operational streamlining 25.58% (143) 9 - Retaining key employees 27.73% (155) Response: Achieving cost savings through headcount reduction 8 - Achieving revenue growth through new product introductions 17.89% (100) 18.78% (105) 10 - Integrating local management 42.04% (235) 19. What will be the main drivers for companies in your industry to make cross-border acquisitions over the coming five years? Select up to three. 1 - To survive 30.32% (178) 2 - To increase prices 5.45% (32) 3 - To hold prices 8.18% (48) 4 - To guarantee the profitability of the business 54.34% (319) 5 - To meet all targets of the set corporate strategy 49.06% (288) 7 - To diversify the company's know-how 27.09% (159) Response: To reach the needed cost-level 25.89% (152) 8 - None of the above companies in my industry will not be driven to make cross-border acquisitions 12.27% (72)

12 In which country are you personally based? 1 - China 17.18% (101) 2 - Japan 14.46% (85) 3 - Finland 3.91% (23) 4 - Germany 11.73% (69) 5 - Norway 3.74% (22) 6 - Sweden 6.29% (37) 7 - United Kingdom 17.18% (101) 9 - Other, please specify 6.8% (40) Mean: 4.92 Response: 588 In which country is your company headquartered? 8 - United States 18.71% (110) 1 - China 16.17% (97) 2 - Japan 12.83% (77) 3 - Finland 3.83% (23) 4 - Germany 13% (78) 5 - Norway 3.67% (22) 6 - Sweden 5.67% (34) 7 - United Kingdom 12.83% (77) 8 - United States 31.67% (190) 9 - Other, please specify 0.33% (2) Mean: 5.04 Response: 600

13 What is your primary industry? 1 - Agriculture and agribusiness 2.34% (14) 2 - Automotive 3.67% (22) 3 - Chemicals 4.01% (24) 4 - Construction and real estate 3.51% (21) 5 - Consumer goods 5.18% (31) 6 - Defence and aerospace 0.83% (5) 7 - Education 0.33% (2) 8 - Energy and natural resources 6.84% (41) 9 - Entertainment, media and publishing 3.01% (18) 10 - Financial services 15.19% (91) 11 - Government/Public sector 1.17% (7) 12 - Healthcare, pharmaceuticals and biotechnology 8.18% (49) 13 - IT and Technology 5.34% (32) 14 - Logistics and distribution 3.01% (18) 15 - Manufacturing 19.2% (115) 16 - Professional services 4.34% (26) 17 - Retailing 4.67% (28) 18 - Telecoms 5.34% (32) 19 - Transportation, travel and tourism 3.84% (23) Mean: Response: 599 What are your organisation's global annual revenues in US dollars? 1 - $100m or less 0.17% (1) 2 - $100m to $500m 11.85% (71) 3 - $500m to $1bn 13.69% (82) 4 - $1bn to $5bn 29.55% (177) 5 - $5bn to $10bn 12.02% (72) 6 - $10bn or more 32.72% (196) Mean: 4.4 Response: 599

14 Which of the following best describes your title? 1 - Board member 2.5% (15) 2 - CEO/President/Managing director 3.84% (23) 3 - CFO/Treasurer/Comptroller 10.18% (61) 4 - CIO/Technology director 2.34% (14) 5 - Other C-level executive 4.84% (29) 6 - SVP/VP/Director 18.7% (112) 7 - Head of Business Unit 5.84% (35) 8 - Head of Department 17.7% (106) 9 - Manager 25.54% (153) Mean: 6.84 Response: 599 What are your main functional roles? Please choose no more than three functions Other 8.51% (51) 1 - Customer service 4.67% (28) 2 - Finance 26.33% (158) 3 - General management 31.83% (191) 4 - Human resources 5% (30) 5 - Information and research 9.83% (59) 6 - IT 9.17% (55) 7 - Legal 4% (24) 8 - Marketing and sales 15.83% (95) 9 - Operations and production 11.17% (67) 10 - Procurement 3.83% (23) 11 - Risk 10.17% (61) 12 - R&D 7.33% (44) 13 - Supply-chain management 4% (24) 14 - Strategy and business development 36.67% (220) 15 - Other 4.67% (28) Response: 600 Generated using clicktools on Tuesday May :17:00