A study by professional service firm KPMG indicated that 83% of mergers fail. 

However in a recently published report, The State of the Deal: M&A Trends 2019 by Deloitte, indicated that "corporate and private equity executives focused on mergers and acquisitions anticipate further acceleration of deal flow in 2019 - both in the number of transactions and in their size - which would further extend several years of record M&A activity."

Why does this dichotomy exist? If so many mergers fail, why are a record number of firms engaging in merger activity?

 

 

Reference:

Deloitte. (2019). The state of the deal: M&A trends 2019.  https://www2.deloitte.com/content/dam/Deloitte/us/Documents/mergers-acqisitions/us-mergers-acquisitions-trends-2019-report.pdf 

Answer rating: 100% (QA)

Solution The obvious inconsistency between the high disappointment pace of consolidations and the rising pattern of firms taking part in consolidation action can be credited to a few factors Understan... View the full answer