Companies that are avoiding mergers and acquisitions in an economic slowdown may be missing a major strategic opportunity. According to this study by the Corporate Development practice of The Boston Consulting Group (BCG), mergers that take place during periods of below-average economic growth have a higher likelihood of success. And they generate considerably more shareholder value, on average, than deals taking place during periods of above-average growth. The study analyzes 277 M&A transactions that took place in the United States between 1985 and 2000.
Authors: Alexander Roos, Chris Neenan, Daniel Stelter, Jeffrey Kotzen
Source: Boston Consulting Group (BCG)
Subject: Best Practices