PwC

What if you could manufacture a smart deal?

We surveyed 100 senior corporate executives in the industrial products and services (IPS) industry, globally, and asked about their experiences with value creation in M&A.

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Product diversification drives 39% of industrial products and services deals

However, it is more niche drivers such as disruption in an industry or technology acquisition that more consistently create value. Of the 10% of industrial products and services companies in our survey that pursued one of these two strategies, none lost deal value. That said, 33% said their last acquisition taught them that they need to do more to put value creation at the heart of future deals.

How? Our Creating value beyond the deal: industrial products and services report asks organisations to focus on:

  • Creating a plan early on - one that considers the target operating model, people and tax
  • Approaching the deal smartly, preserving intellectual property and human capital as well as driving innovation
  • Moving quickly to tackle challenges that could arise from merging operating models, management practices and culture
  • Not underestimating the importance of culture and talent, which can be one of the biggest destroyers of value
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    What if you took a different perspective to your M&A?

    Download our report and explore more.

     

    Paul Elie

    Global Industrial Manufacturing and Automotive Deals Leader,
    PwC US

    “Although the industrial products and services industry has a good M&A track record overall, a more disciplined approach to value creation and greater focus on the strategic fit of the target are areas of opportunity to further maximise value through M&A.”