homa13_1536x1152_Original

How markets view M&A: A McKinsey interpretive tool

Explore how much value investors believe deals have created—and for whom.

When a company announces a new acquisition, managers hold their breath in anticipation of the market’s reaction. If the share price goes up, they see that as a vindication of the deal. Whether or not this is a good indicator of long-term value creation, it does offer insights into investors’ perceptions of the risks acquirers face in implementing deals. And in the aggregate, announcement effects offer a general perspective on the markets’ reaction to deals over time. 

This interactive focuses on two salient questions. First, do investors think that deals created value—and for whom—given the limited information they have in the days following the announcement? And do they believe that the value acquired was worth the price paid for it?

Open interactive popup How markets view M&A: A McKinsey interpretive tool
More on Strategy & Corporate Finance
Article - McKinsey Quarterly

Organizational health: A fast track to performance improvement

Article - McKinsey Quarterly

Culture for a digital age

Commentary - McKinsey Quarterly

Putting lifelong learning on the CEO agenda

Commentary - McKinsey Quarterly

Getting ready for the future of work