KPMG – The M&A Dance: Orchestrating Synergies and Value Creation in Public Company Acquisitions

The report focuses on analyzing value creation in mergers and acquisitions (M&A) of public companies, with an emphasis on synergies and total shareholder return (TSR).

M&A transactions are a crucial tool for strategic growth, but extracting sustainable value from them remains a challenging task. The study found that 57.2% of acquirers ultimately destroy shareholder value. While many deals appeared promising before completion, TSR on average decreased by 7.4% within two years after deal closure. The main reasons for value destruction are overestimation of benefits and insufficient realization of synergies.