Valuation issues KO’d a third of M&A deals in 2016

BVWireIssue #173-1
BVWireIssue #173-1
February 1, 2017

Disagreement over valuation is the most prevalent reason a merger or acquisition fails to be completed, according to a report from KPMG. In a recent survey, over a third (36%) of respondents say valuation issues were the primary reason for deal failures over the past 18 months. The other reasons are: loss to a competing bid (22%), financial issues revealed during due diligence (11%), operating issues revealed during due diligence (11%), management issues or lack of fit (9%), recent regulatory changes (4%), changing industry-specific conditions (4%), and changing macroeconomic conditions (3%).

M&A education: Want to get some perspective and learn practical insights on the latest strategies for evaluating and structuring corporate transactions? BVR partner Transaction Advisors will present some events this year where you can rub shoulders with M&A experts. The events are: Chicago M&A Conference (March 2, Chicago) and the San Francisco M&A Conference (May 11, San Francisco).

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