How to win at M&A

Author: | Published: 28 Jun 2017

While 2016 will be remembered for the record amount of abandoned M&A transactions, 2017 looks like it may well continue down the same path. Estimates put the value of withdrawn deals so far this year at some $423 billion over 560 transactions globally – roughly one-third of the $1.4 trillion in deals announced to date this year.

Market volatility in the aftermath of the UK's Brexit vote and the US presidential election certainly made corporates think twice about their long-term strategy. But increasing scrutiny from a variety of parties linked to the M&A process was also a key factor that derailed a number of transactions – while competition law concerns outweighed the Hutchison/O2 and Baker Hughes/Halliburton combinations, the Pfizer/Allergan fell afoul of a tax ruling from the US Department of Treasury. Dissident shareholders weakened US paint giant PPG's $27 billion third bid for Dutch rival Akzo Nobel, while...