Global M&A: Fewer deals, better quality In 2013, acquirers continued to improve their discipline in creating value.
The amount of value created by M&A in 2013 continued to hover well above the long-term average, even as the volume of deals declined.
Acquirers also continued to improve their discipline at capturing this value for their shareholders. The proportion of deals followed by a decline in the acquirer’s share price—that is, the percentage of overpayers (POP)—fell to a new low of 45 percent, significantly better than the historic average of 58 percent (Exhibit 2). In fact, since 2010, more than half of all deals have left the acquiring and acquired companies worth more together than they were apart. Even acquirers, who were long seen to be ceding most of the value created by a merger to acquired-company shareholders, are at least no longer destroying value. Their aggregate average return was just slightly positive over the past four years.