Apr 13, 05:03 PM

Bain Study: M&A Boosts Shareholder Returns, Defies Conventional Wisdom

Recent studies by Bain show that companies engaging in M&A activities have seen a significant increase in shareholder returns, with frequent acquirers earning 130% higher returns compared to non-acquirers. This challenges the conventional belief that acquisitions often destroy value, as data from the last decade indicates that acquiring firms have outperformed non-acquirers. The shift in performance trend from '12 to '24 suggests that M&A strategies have become more favorable for companies.

#Bain

Written with ChatGPT (GPT-3).

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Ryan Telford@RTelford_invest
3 years ago
It still doesn’t cease to amaze me how much “conventional wisdom” only really applies to specific periods in time. Markets are always changing. There are advantages to using data as opposed to rules of thumb. https://t.co/kQV2rDFmoj
f5 enter@ctrlopenbracket
3 years ago
“Companies should focus on buybacks because M&A is bad and any management that pursues a growth strategy is only doing so out of a selfish desire to empire build” https://t.co/w7lzR5ECLM https://t.co/9YuDPTvLdX
Ryan Telford@RTelford_invest
3 years ago
🧵Conventional wisdom: "Acquisitions often destroy value". The data: "Acquiring firms outperform non-acquirers (last 10 yrs)". Take R3000, non-acquirers outperformed '99-'12 (conv wisdom), however there's been a shift from '12 - '24 where acquirers have outperformed. (2/n)👇 https://t.co/hXM6qeW4m8

Bain Study: M&A Boosts Shareholder Returns, Defies Conventional Wisdom

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