M&A strategies for specialty-chemical corporates | Page 6

Strategic Rationale | Deal Frequency & Deal Volume | Strategic Groups

Frequent M & A activity supports higher shareholder returns

Corporates that focus on a higher deal frequency ( 9.8 %) show a slightly higher average annual TSR than corporates following an M & A strategy with a lower deal frequency ( 9.2 %).
DEAL CHARACTER-
ISTIC
Low
DEAL FREQUENCY
High
9.2 %
Avg . TSR of corporates that predominantly focus on frequent acquisitions
9.8 %
PERFORMANCE ( AVG . ANNUAL
TSR )
Avg . TSR
Avg . TSR
A majority of corporates follow a strategy of frequent deals from 2016 to 2021
SHARE OF COMPANIES BY DEAL STRATEGY 1
High
Low
69 % 75 % 69 % 69 % 69 % 75 %
31 % 25 % 31 % 31 % 31 % 25 %
2016 2017 2018 2019 2020
2021
[ 1 ] High : more than two deal per year ; low : fewer than two deals per year Source : goetzpartners
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