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Rethinking the M&A process: Learning private equity’s secret to outperforming corporate strategic acquirers

Strategy & leadership, 2022-04, Vol.50 (3), p.21-28 [Peer Reviewed Journal]

Emerald Publishing Limited ;Emerald Publishing Limited. ;ISSN: 1087-8572 ;EISSN: 1758-9568 ;DOI: 10.1108/SL-03-2022-0015

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  • Title:
    Rethinking the M&A process: Learning private equity’s secret to outperforming corporate strategic acquirers
  • Author: Gilligan, John ; Galpin, Timothy
  • Subjects: Bankruptcy ; Business models ; Due diligence ; Equity ; Equity funds ; Funeral industry ; Human resources ; Investments ; Private equity ; Software services ; Stockholders ; Value creation
  • Is Part Of: Strategy & leadership, 2022-04, Vol.50 (3), p.21-28
  • Description: Purpose Although M&A transactions often destroy shareholder value for corporate strategic buyers, PE firms, whose business model is predicated upon repeating M&A, have a better record of creating value for their investors. Design/methodology/approach The critical aspects that comprise the PE playbook are organized around the three main deal phases Pre-deal, Deal and Post-deal. Findings Research has found that 60 percent of surveyed strategic buyer executives indicated their companies do not have a comprehensive end-to-end M&A approach using a playbook. Practical/implications Ample evidence exists demonstrating that corporate strategic buyers experience significant difficulty in creating value from their transactions. Originality/value Though many view PE firms as value-destroyers, various peer-reviewed studies have found that PE-backed firms have a surprisingly favorable record.
  • Publisher: Chicago: Emerald Publishing Limited
  • Language: English
  • Identifier: ISSN: 1087-8572
    EISSN: 1758-9568
    DOI: 10.1108/SL-03-2022-0015
  • Source: ProQuest Central

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