Deloitte: M&A in Overdrive But Deal Synergies Don't Always Pan Out
The M&A environment is the strongest it’s been since 2007, yet investors and managers alike should be cautious because deal synergies do not always pan out.
The M&A environment is the strongest it’s been since 2007, yet investors and managers alike should be cautious because deal synergies do not always pan out, said Tom McGee, Deputy Chief Executive Officer of Deloitte LLP. January 2015 was the busiest start to the year for M&A transactions since 2011, with deals totaling $232.9 billion, according to Thomson Reuters. Nevertheless, nearly 30% of respondents in a Deloitte survey said their integration efforts fell short of success. McGee said the inability to deal with unexpected challenges was the primary factor that doomed combinations, along with delays and lack of preparedness.
