Bay Street News

Deal makers consistently beat the market over the last 10 years, underlining M&A’s success as a growth strategy

ARLINGTON, Va., Nov. 27, 2018 (GLOBE NEWSWIRE) — M&A deal making has been unequivocally shown to have delivered superior shareholder returns during the last decade, according to global M&A data compiled by leading global advisory, broking and solutions company, Willis Towers Watson’s (NASDAQ: WLTW) Quarterly Deal Performance Monitor (QDPM). Based on share price performance, companies actively engaged in M&A deals (valued at over $100 million) from 2008 to 2018 outperformed the market2 by an average of 3.1pp (percentage points), demonstrating M&A as an effective tool for adding value.

“Some business leaders argue that organic growth is better than buying growth, but the track record of the last decade should make companies question this conventional view,” said Jana Mercereau, senior director of Willis Towers Watson’s Mergers and Acquisitions team. “Our data show companies that were disciplined acquirers consistently outperformed those that stayed away from deals. M&A, in short, has been a successful strategy for profitable growth.”

The five biggest trends over the last 10 years, according to the Willis Towers Watson global study in partnership with Cass Business School, have been:

“Deal making is cyclical and success never guaranteed, with recent years proving especially difficult to deliver a deal without harming shareholder value. But the historical success of M&A as a growth strategy comes into sharp relief when you take a long-term view,” said Mercereau. “Our analysis suggests that companies will need to focus more on inorganic growth to meet their investors’ expectations. And just as we have seen in the last decade, the winners will be those who get in the game and learn how to play it well.”

Willis Towers Watson QDPM methodology

About Willis Towers Watson M&A

Willis Towers Watson’s M&A practice combines our expertise in risk and human capital to offer a full range of M&A services and solutions covering all stages of the M&A process. We have particular expertise in the areas of planning, due diligence, risk transfer and post-transaction integration, areas that define the success of any transaction.

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has over 40,000 employees serving in more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

Media contact

Ed Emerman: +1 609 275 5162
eemerman@eaglepr.com

____________
1QDPM, Willis Towers Watson and Cass Business School. Research for 2018 includes deals completed between January 1, 2018, and September 30, 2018.
2The MSCI World Index — used here as default, unless stated otherwise. The share price returns have been adjusted to index returns over the corresponding period.