Regardless of external factors, companies engaging in M&A activity generally outperform the
The figures, which come from the latest issue of
Asia-Pacific acquirers closing deals in 2011 add more value to their shareholders, outperforming their regional index by 6.7 percent; Europeans outperformed their index by 4.8 percent. North American buyers closing deals in 2011 show less material outperformance with a return of 1.4 percent over their regional index.
The study also highlights the marked difference in a deal’s time to completion based on regional location. On average, Asia-Pacific acquirers take 108 days to complete a deal, compared to just 57 days by their North American counterparts—a difference of almost 50 percent. European acquirers take 89 days on average to complete a deal.
The study took into account all transactions completed since Jan. 1, 2011, while fourth-quarter deals cited closed between October 1 and Dec. 9, 2011. All deals included had a value of $100 million or more, which totaled 740, with several insurers contributing to that tally.
Towers Watson included five recommendations for acquiring companies: Secure key leadership and talent, quickly form a view on the financial impact of HR programs, plan and build upon deal objectives and due diligence findings, execute rigorously with a focus on the deal objectives and include HR representation from the start of the process.
