The Key to Producing Shareholder Value
It’s clear that the chemical industry landscape is being re-drawn more drastically than at any other time in the past 20 years. In Europe alone, more than 23,000 companies are re-thinking their place as they consider merging, or becoming merged. The factors driving this activity: the relentless pursuit of increased shareholder value, a push to cut costs and focus on core competencies, and to add value by venturing into the solutions space. All of these will continue to buttress M&A activity in 2017, quite possibly disrupting other industries in the process.
But not all future mergers will be successful, in terms of shareholder value. In fact, numerous studies have indicated that more than 80% of business acquisitions fail to deliver the value expected. Why is that?