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Nearly Two-Thirds of SME M&A Deals for Companies with Significant DTC Sales Don't Yield Return Exceeding Industry Avg.

HELSINKI, FINLAND, June 14, 2022 /EINPresswire.com/ -- European-based management consulting firm HKH Management Consulting Ltd. has released an in-depth study of more than 40 acquisitions completed by European SME’s from 2007 to 2017, determining that nearly two-thirds of those deals involving companies with at least 15% of their turnover from DTC sales do not yield a return value greater than the industry average. According to HKH Managing Partner and CEO Jari Helenius, “Most of these deals have fallen short of their promise”. The study analyzed deals valued at 50 EUR million or less tracking price premium paid over stock price and strategic intent of the transaction. The study further determined that strategic transactions are in fact no more likely to generate return value, showing no difference in value return between consolidation, strategic diversification and unrelated diversification deals. Ultimately, according to Helenius, “Our research confirms that post-merger management and integration are the most important determining factors in generating value in an acquisition deal”. He adds, “According to our findings, price premiums paid for transactions of this size do not correlate with generating positive return value for shareholders over industry averages.”

Additional information, interview opportunities and copies of the executive summary are available by directly contacting HKH Management Consulting Ltd.

About HKH Management Consulting Ltd. - HKH Management Consulting Ltd. is a privately held and owned boutique consultancy & business service company focusing on serving clients globally primarily in the area of Direct-to-Consumer (DTC) business models. We are a member of the Global Consultancy Partners (GCP). We focus on solving clients challenges and provide end-to-end service in strategic business development, product & service development, marketing analytics, market research, database marketing, digital marketing, marketing automation solutions as well as services in the area of funding for DTC startup businesses. With offices in Helsinki, Finland, Malaga, Spain and New York, USA, it has a network of partner companies globally to provide even greater value for its clients and to be in a position to provide deeper end-to-end service on a case-by-case basis. For more about HKH Management Consulting and its services, please visit www.hkhconsulting.net.

Jari H. Helenius
HKH Management Consulting Ltd.
+34 951 23 71 84
press@hkhconsulting.net
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