NEW DELHI: The Indian deal landscape is witnessing big ticket transactions but only 21 per cent of dealmakers consider their deals to be "extremely successful", says a PwC Survey.
According to PwC Post-Merger Integration Survey 2017, 63 per cent of respondents believed that their deals were only moderately successful and not able to achieve their full potential.
The respondents identified synergy realisation, return on investment and gains in market share as top three performance indicators for measuring deal success.
"The success of a deal is defined by the achievement of strategic, financial and operational objectives. However, the integration process—an important lever to achieve these goals — often does not find adequate space in the priority calendar of dealmakers, resulting in less than optimum value realisation," PwC India Partner & Leader – Delivering Deal Value Yashasvi Sharma said.
The survey noted that over 30 per cent of respondents did not conduct comprehensive due diligence and lack of proper diligence and detailed understanding of the target's operations, increases the complexity and delays integration process.
"Deal teams, generally globally and more so in the highly competitive Indian market, especially with PE money chasing good key assets, are often stretched to close deals. However, buyers are increasingly seeing merit in involving integration teams early on in the process and thinking through the key integration issues before they sign on the dotted line," PwC India Partner & Leader Deals Sanjeev Krishan said.