Summary of M&A Deal Evaluation

Challenging Metrics Myths

A.T. Kearney,

Get the Article

M&A Deal Evaluation summary
Beware of myopic performance metrics when assessing mergers and acquisitions.


8 Overall

8 Importance

7 Innovation

9 Style


According to management consultants Philip Dunne and Angus Hodgson, major stakeholders in mergers and acquisitions tend to overemphasize earnings per share (EPS) as a metric for assessing potential success. However, “EPS accretion” doesn’t necessarily enhance shareholder value, nor does “EPS dilution” always destroy it. Other measures can be more valuable in predicting whether an M&A deal will prosper. getAbstract recommends this astute overview to executives and investors considering an M&A transaction now or in the future.

In this summary, you will learn

  • Why mergers and acquisitions often fail to enhance shareholder value
  • Why earnings per share should not be your only M&A evaluation tool
  • Why executing “fact-based due diligence” is the best way to predict M&A success


A substantial proportion of mergers and acquisitions fail to enhance shareholder value. Often, the problem is due to poor integration efforts between companies. However, in many cases, an M&A transaction flops because the deal’s stakeholders have placed inordinate emphasis on the new entity’s potential...
Get the key points from this article in less than 10 minutes. Learn more about our products or log in

About the Authors

Philip Dunne is a partner with global management consultancy A.T. Kearney, where Angus Hodgson is a principal.

Comment on this summary

More on this topic

Customers who read this summary also read

More by category