Low-volume M & A deals support higher shareholder returns
Companies that focus on smaller deal volumes ( 14.3 %) show a remarkably higher average annual TSR than corporates that follow an M & A strategy with large deal volumes ( 5.9 %).
|
DEAL CHARACTER-
ISTIC
|
Small |
DEAL VOLUME |
Large |
|
14.3 % |
|
|
|
PERFORMANCE ( AVG . ANNUAL
TSR )
|
|
|
5.9 % |
|
Avg . TSR |
|
Avg . TSR |
Only a minority of corporates focused predominantly on deals with small transaction volumes in 2021 even though this strategy promises significantly higher TSR
SHARE OF COMPANIES BY DEAL STRATEGY 1
|
Small
Large
|
56 % 61 % 50 %
44 % 39 % 50 %
|
35 %
65 %
|
55 %
45 %
|
43 %
57 %
|
2016 2017 2018 2019 2020
2021
[ 1 ] Small : deal volume of less than € 200M ; large : deal volume of more than € 200M Source : goetzpartners
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