Board and investor discussions
Although more than a quarter (27 percent) of respondents say their main board discusses M&A strategy at every board meeting, half say those discussions happen on only an ad hoc basis. Just 9 percent say the board discusses strategy only once a year and 5 percent say it does so at every other board meeting.
One in 10 respondents at small caps report that their main board discusses M&A strategy at every meeting, with 69 percent saying those discussions happen on an ad hoc basis.
In contrast, 38 percent of those at large caps report discussions taking place at every meeting and only a third say these discussions are held on an ad hoc basis. A quarter of those at mega-cap companies say discussions happen at every meeting and 54 percent report ad hoc talks.
Fewer respondents in Europe (34 percent) report the board discussing M&A strategy on an ad hoc basis than do peers in North America (53 percent).
Overall, just under a fifth (18 percent) of respondents say audit committees with M&A strategy oversight report to the main board at every meeting on those issues, while 63 percent say they do so on an ad hoc basis.
Similarly, 19 percent of respondents whose risk committee has oversight of M&A strategy say that panel reports to the main board on those issues at every board meeting, with 58 percent saying they submit ad hoc reports.
In comparison, 41 percent of respondents say finance committees with M&A strategy oversight report on it at every board meeting, while 38 percent say they do so on an ad hoc basis.
Aside from boards discussing M&A strategy issues, companies also face questions from investors about their plans in that area. Overall, 43 percent of respondents say investors ask about their company’s M&A strategy at least sometimes. Around a third say investors ask questions occasionally and just 7 percent say they never ask.
Small-cap companies appear to attract fewer inquiries. More than half of respondents at such firms say investors never or only occasionally ask about their M&A strategy. By contrast, more than half (55 percent) of those at large-cap companies say investors ask such questions sometimes or frequently.
Almost a third (30 percent) of those at mega-cap companies say investors ask about M&A frequently or always, while half of those at mid-caps say investors ask about their company’s M&A strategy at least sometimes.
There is a notable difference regionally: 44 percent of respondents in Europe report investors asking questions frequently or always, compared with just 21 percent of those in North America.
