'Enhancing innovation' is emerging increasingly as an explicit objective of M&A and investment activity. However, making M&As and investments successful is fraught with risk. I gave this presentation at the Summer 2016 Innovation Union in London to explore the issues and potential solutions.

1. The network knows:
How can companies enhance innovation through
mergers, acquisitions and minority stake investments?
Tim Callington
30 June, 2016

2. 0
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AcquisitonVolume
Acquisitionvalue(£millions)
UK Acquisitons: 1987 - 2015
Value Volume

3. M&A by numbers (the bad news)
58% failure rate,
based on financial return
exceeding cost of capital
McKinsey & Co. 1999
50% deliver ‘poor
returns to shareholders’
after three years
Mercer, 1997
58% fail to deliver
substantial returns to
shareholders
A.T. Kerney, 1997
-2.0% average
loss to bidder
shareholders
Goergen & Renneboog, 2003
+30% average
return to shareholders of
target firm
Bhagat et al., 2005
-3.8% fail to
deliver substantial returns
to shareholders
Andrade et al., 2001
-15.5% decline
in shareholder return
over three years
Antoniou et al., 2007
-16% average
return to target
shareholders
Cash et al., 2005
-18% average
return to target
shareholders
Sudarsanam & Mahate, 2003

4. More people –
more quality ideas
(R&D inputs)
New skills & capabilities New customers
and markets
Patents filedIncreased revenue from
new products & service
The opportunity

5. Thank you for your time
Tim Callington
Tw: @timcallington
Li: uk.linkedin.com/in/timcallington