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Dealmakers have an opportunity to use corporate development M&A to help capitalize on long-term trends in technology, regulation and demographics. Being proactive now can help your company reshape its industry, setting the table for a competitive advantage over other players who are still evaluating key dynamics of an evolving business. You can also play a key role in identifying the right strategic targets and getting buy-in for a transaction up and down the org chart. Here’s how you can craft deals that can help clear hurdle rates and create more value for shareholders.
After a year of inconsistent recovery, US mergers and acquisitions activity is poised to gain momentum in 2025 due to declining interest rates, large amounts of dry powder, the need for business reinvention and shifting priorities in regulatory agencies.
Corporate development leaders should be prepared to scenario plan around regulatory and geopolitical exposures, prioritize simplifying their portfolios and focus on a value creation strategy amidst a slowing economy.
[10%] The median year-over-year growth in US M&A volume during the first year of a new presidential administration (1992 to 2024).
Funding transformational deals can be daunting, especially during periods of elevated interest rates. But there are strategies that can help, such as lowering transaction costs by engaging in joint ventures instead of outright acquisitions or using divestitures to raise capital that can be reinvested in transformational M&A. Deals and transformation aren’t sequential events. Instead, they’re a series of carefully orchestrated investments that combine deals with transformation initiatives to help drive total shareholder return. Look to important factors in IT, HR and sales as opportunities to increase the scope of your transformation investments.
Transformation may not just be about surviving in an evolving business environment — but also learning to thrive in it.
Having a process to determine whether your business can benefit from strategic acquisitions, joint ventures, spinoffs and divestitures is a key to your success.
Companies that will grow and create value are solving global crises, leveraging exponential technologies, and adopting game changing business models.
Divestitures — if done right — can help companies transform faster and emerge stronger.
[59%] of companies spent 6% or more of deal value on integration from 2020 to 2022
In M&A, understanding the numbers may not be enough. It’s also important to be aware of your colleagues’ mindsets. Corporate development industry leaders are the nexus of deals — facilitating collaboration in M&A activities from the C-suite down to line managers. Externally, you’re also constantly building credibility with counterparties and the market in general. Some colleagues and counterparties are visionaries comfortable with cultural and technological experimentation. Others can be stalwarts with more measured and grounded approaches to deals. Understanding the psychology of those you work with can help you adjust your approach accordingly and reduce friction in the process.
Take our quick quiz to uncover your M&A identity and capture value throughout the process.
Find out why trust is what executives say and do that can lock in perceptions of them — and the company’s culture and strategy.
Establishing trust in leadership and organizational systems is an effective way to help reduce workforce inequities.
[93%] of business executives agree that building and maintaining trust improves the bottom line
Source: PwC’s 2024 Trust Survey
Making tech transformations a reality during deal integration isn’t easy. One contributing factor to success can be a focus on agile, smaller-scale digital investments. By zeroing in on clear outcomes — like improving customer experience, strengthening customer relationships and speeding up innovation — you can generate revenue more quickly. Analytics platforms can help monetize and extract value from data your company already has, and strong analytics can speed up decision-making and more quickly measure the ROI of new products, services and initiatives.
Implementing a global payroll operating model is a key, but often can be an underused strategy to help improve efficiency during a company's transformation.
How is next-generation cloud redefining outcomes and organizations? PwC's 2024 Cloud and AI Survey reveals what it takes to compete in an AI economy.
Executives can fund faster transformation and create value by using these three strategic approaches for high-stakes execution through deals.
[51%] of executives invested in new technologies to enhance performance
Source: PwC Pulse Survey, June 2024
Details matter — especially when it comes to regulators. From global tax law changes like Pillar Two to increased domestic antitrust scrutiny, the evolving regulatory environment can have a big impact on your deal’s total shareholder return. In some cases, those details can prevent your deal from even happening, triggering termination fees instead of transition services agreements. Staying up to date may be harder than ever due to the volume of changes. The difficulty is compounded by the fact that, while they differ on priorities, both Democrats and Republicans are more open to regulation than they were just a few years ago. Keeping a close eye on regulatory developments can be essential to help deliver on your deal’s strategic promise.
Learn how strong corporate profits, rising executive confidence and stabilizing inflation are driving an M&A recovery.
Acquisitions have allowed TMT companies to fast-track growth, but today's regulatory climate demands new strategies at each phase of the deal.
Find out why companies should assess key regulations, develop policy strategies and maintain compliance when federal courts limit agency power.
[81%] of executives say complying with new regulations is a challenge to transformation
Source: PwC Pulse Survey, June 2024
Identify the key focus areas of your colleagues.