Turning diligence insights into actionable integration steps
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A September 2023 Deloitte poll surveyed over 400 private equity investors and corporate M&A professionals about their transaction expectations and due diligence confidence. Key findings reveal concerns about challenges in obtaining effective pre-deal due diligence and inconsistent incorporation of findings into post-merger integration plans. The poll highlights a significant number of respondents expressing limited confidence in their organizations' due diligence capabilities and the integration of those insights post-acquisition.
Turning diligence insights into actionable integration steps
- 1. Turning diligence insights into actionable integration steps Deloitte poll results September 2023
- 2. Turning diligence insights into actionable integration steps Copyright © 2023 Deloitte Development LLC. All rights reserved. 2 Methodology 215+ Private equity investors (PEIs) and in-house, corporate M&A professionals (corporates) were polled online during a Deloitte webcast titled “Turning diligence insights into actionable integration steps” on July 25, 2023. Answer rates differed by question. In some instances, immaterial amounts (e.g., +/- 0.1%) have been added to or removed from the “Don’t know/not applicable” answer responses to bring results to 100% total for each question.
- 3. Turning diligence insights into actionable integration steps Copyright © 2023 Deloitte Development LLC. All rights reserved. 3 Votes received: 254 PEIs, 233 corporates How many transactions does your organization expect to pursue (i.e., to consider, but not necessarily close) in the next 12 months? Don’t know / not applicable = 7.6% for PEIs and 9% for corporates 10.2% 55.5% 16.1% 10.6% 8.2% 51.1% 18.0% 13.7% PEIs Corporates 1-5 6-10 11+ None
- 4. Turning diligence insights into actionable integration steps Copyright © 2023 Deloitte Development LLC. All rights reserved. 4 Votes received: 249 PEIs, 229 corporates Are you confident in your organization's ability to conduct thorough pre-deal due diligence when evaluating a potential transaction target? Don’t know / not applicable = 9.7% for PEIs and 3.1% for corporates 46.2% 36.9% 7.2% 40.6% 43.2% 13.1% PEIs Corporates Somewhat confident Not confident Highly confident
- 5. Turning diligence insights into actionable integration steps Copyright © 2023 Deloitte Development LLC. All rights reserved. 5 Votes received: 208 PEIs, 187 corporates Which of the following currently poses the greatest challenge to your organization's ability to conduct effective pre-deal due diligence? Don’t know / not applicable = 15.8% for PEIs and 15.5% for corporates 7.0% 10.7% 28.3% 38.5% 5.8% 8.7% 19.2% 50.5% PEIs Corporates Key data inputs for due diligence reports are unavailable or located in disparate sources making them difficult to gather Due diligence reports lack findings for key areas of the business, such as talent, cybersecurity, business insurance, etc. There is limited or no governance structure to guide the diligence process (e.g., to guide timely hand-offs or to cascade deal rational through to the integration strategy) Due diligence is conducted too late in negotiations to be an effective aid in post-merger integration planning
- 6. Turning diligence insights into actionable integration steps Copyright © 2023 Deloitte Development LLC. All rights reserved. 6 Votes received: 112 PEIs, 103 corporates Does your organization incorporate findings from due diligence reports into post-merger integration plans? Don’t know / not applicable = 13.4% for PEIs and 10.7% for corporates 1.9% 10.7% 33.0% 43.7% 2.7% 5.4% 19.6% 58.9% PEIs Corporates Yes, we routinely incorporate due diligence findings into post- merger integration plans Yes, but we are inconsistent in applying due diligence findings to post-merger planning No, but we plan to begin applying due diligence findings to post- merger planning within the next 12 months No, and we have no plans to begin doing this
- 7. Turning diligence insights into actionable integration steps Copyright © 2023 Deloitte Development LLC. All rights reserved. 7 Media Contacts Christine Oh Public Relations Deloitte & Touche LP chrisoh@deloitte.com Taylor Graham Public Relations Deloitte Services LP tagraham@deloitte.com
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