Overseeing M&A strategy
The role of overseeing companies’ M&A strategy is widely held by the board as a whole. More than three quarters (77 percent) of all respondents say their main board has primary oversight of M&A strategy. Among those at small and mid-cap companies, 78 percent say the main board is in charge, while 86 percent of those at large-cap companies and 68 percent of those at mega-cap companies say likewise.
Overall, the finance committee (9 percent of respondents) is the most frequently cited alternative to the main board having primary oversight. Three percent of respondents mention the audit committee. Almost a quarter (24 percent) of those at mega-caps say their finance committee takes the lead on M&A oversight.
More than three quarters (77 percent) of respondents in North America say the main board has primary oversight, with 82 percent of those in Europe saying likewise.
Despite the widespread practice of giving the main board lead oversight of M&A strategy, respondents report that individual committees are also involved to some extent. Overall, more than four in 10 (42 percent) say their audit committee has some oversight, followed by 17 percent who mention the risk committee and 12 percent who mention the finance committee.
A smaller proportion (32 percent) of those at mega-cap companies mention their audit committee as having some oversight, while other mega-cap respondents refer to their compliance, risk or finance committees (16 percent each). Almost a quarter (23 percent) of respondents at mid-caps mention their risk committee.
More respondents in Europe (52 percent) than in North America (41 percent) say their audit committee has some oversight of M&A strategy. More respondents in Europe (28 percent) also mention their risk committee than do those in North America (12 percent).
Overall, the most frequently cited management team to be mentioned as assisting with M&A strategy is finance (78 percent of respondents) followed by the corporate secretary/general counsel (73 percent) and human resources (11 percent). More than three quarters (79 percent) say their board gets assistance from outside advisers.
Respondents at large-caps (86 percent) are most likely to say their board gets outside advice, followed by those at mid-caps (83 percent), mega-caps (79 percent) and small-cap companies (72 percent).
Respondents at mid-cap companies (83 percent) are most likely to say their board gets assistance from the corporate secretary/general counsel, followed by those at large-cap companies (76 percent), small caps (74 percent) and mega-cap firms (63 percent).
Slightly more respondents in Europe (83 percent) say their board uses outside advisers than do those in North America (79 percent). Seventeen percent of those in Europe say human resources helps with M&A strategy, compared with just 9 percent of those in North America.
