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 consultancy accelerating value realization globally. We engage deeply with our clients to assess, architect, activate, and accelerate value realization, delivering research-based insights and execution excellence through a cultivated and caring team of experts with deep sector and situational experience, a best practice approach, and an outperformance mindset.
About Corbin Advisors
Corbin Advisors is a strategic consultancy accelerating value realization globally. We engage deeply with our clients to assess, architect, activate, and accelerate value realization, delivering research-based insights and execution excellence through a cultivated and caring team of experts with deep sector and situational experience, a best practice approach, and an outperformance mindset.
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Access insights in our regularly published research, which captures trends in institutional investor sentiment globally
A strategic consultancy accelerating value realization globally