The Importance of Metrics for Successful M&A Transactions

Mercer Insights


The Well Prepared Dealmaker:  The Importance of Metrics for Successful M&A Transactions


Organizations increase the probability of a successful transaction (M&A) by implementing a formal, sophisticated process — supported by relevant metrics — throughout a deal’s life cycle.

While every transaction poses its own unique challenges, Mercer researched and built a framework of best practices to improve clients’ M&A performance. Working directly with clients, Mercer compiled information on their experiences, approaches, processes, metrics, and other key components that relate to deal success. Mercer’s research clearly indicated that using this framework as a guide should help M&A teams agree on deal priorities, identify potential issues in a timely manner, and document experiences to avoid future mistakes. 

Mercer research at a glance

  • Mercer’s research study, The Well-Prepared Dealmaker: The importance of Metrics for Successful M&A Transactions, used the following approach:
  • The study examined metrics used by acquirers at different experience levels, how organizational structure and processes support the setting and review of metrics, and the features of acquirers’ most successful deals.
  • Mercer researched current literature on the topic and interviewed executives, using questions with Likert-scale responses, as well as open-ended questions. (A Likert scale is a rating scale that may, for example, ask respondents to rank their level of agreement with a given statement.)
  • Interviewees from 80 acquisitive companies around the world included 55 human resources executives (mostly directors or vice presidents), 28 senior corporate development executives and managers, and
  • 14 corporate M&A leaders.
  • The study analyzed participant companies by deal experience, geography and industry, and title.
  • The team developed a process model to propose best practices for using metric

 

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