To understand the factors influencing performance in dealmaking, PwC interviewed 100 technology, media and telecommunications (TMT) senior executives from a range of companies and geographies about their experiences in creating value through M&A.
What did PwC find?
Although the percentage of TMT acquisitions that create value is roughly in line with other industries, the returns from “winning” deals are higher in the TMT sector than in any other, in some cases by a significant amount.
PwC’s report Creating value beyond the deal: technology, media and telecommunications found:
1. High returns need nurturing: Success comes from careful planning
85% of TMT deals have a technology plan at signing (higher than the cross-sector average).
2. There’s value beyond the tech: Culture and people are just as important
66% of deals are impacted by cultural issues.
3. You need to keep your eyes on the prize at Day One of signing
35% of TMT deals prioritised value creation from Day One, with only customer retention prioritised ahead at 36%.