For the past 15 years, free cash flow generation and effective capital deployment, namely M&A, have continued to proliferate as an investment factor and serve to positively differentiate companies that have demonstrated strong, consistent execution in this area.
Key Findings and Insights
M&A Framework and Pre-Acquisition Announcement
- Strategic Fit is identified as the leading determinant of M&A success by investors, followed by Overall ROIC and Price Paid
- 88% of top-quartile companies ranking highest on M&A track record in the Corbin Analytics database have an established and regularly communicated M&A framework
Acquisition Announcement
- 83% of investors believe an acquisition warrants a webcast if it represents 10% or more of revenue or EBITDA, with 52% targeting the 10-20% range
- 57% of companies hosted a dedicated webcast; this includes 66% of public-to-public deals and 47% of public-to-private deals
Post-Acquisition Announcement Prior to Close
- 83% of companies addressed the acquisition in the subsequent earnings press release beyond basic financials; of these, 76% included a brief mention, while 28% created a dedicated section to highlight strategic and financial elements (best practice)
Post-Acquisition Close
- More, 46%, of the investment community expect EPS accretion within two years of close versus 32% within the first full year
Survey timeframe February – June 2024
About Corbin Advisors
Corbin Advisors is a strategic investor relations and communications advisory firm with a track record of supporting our publicly traded clients in creating sustained shareholder value. Our approach leverages decades of Voice of Investor® (VOI) research and data-driven insights; capital markets expertise and deep best practice knowledge; and a proven playbook and passion for client outperformance. We are a trusted advisor and partner to boards of directors, executive leaders, and investor relations professionals, serving a broad range of companies globally across sectors, sizes, and situations. Through defining the standard of excellence and challenging conventional thinking, we enable our clients to boldly differentiate their equity brand, maximize valuation, and build more durable franchises.
Corbin Advisors. Outperformance Built on Trust®.
About Corbin Advisors
Corbin Advisors is a strategic investor relations and communications advisory firm with a track record of supporting our publicly traded clients in creating sustained shareholder value. Our approach leverages decades of Voice of Investor® (VOI) research and data-driven insights; capital markets expertise and deep best practice knowledge; and a proven playbook and passion for client outperformance. We are a trusted advisor and partner to boards of directors, executive leaders, and investor relations professionals, serving a broad range of companies globally across sectors, sizes, and situations. Through defining the standard of excellence and challenging conventional thinking, we enable our clients to boldly differentiate their equity brand, maximize valuation, and build more durable franchises.
Corbin Advisors. Outperformance Built on Trust®.
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