Source page: McKinsey & Company
Commentary
Get with the program
M&A | Strategy
September 18, 2023 – A proactive, programmatic approach to M&A continues to be a winning growth strategy for many organizations (programmatic M&A is when companies regularly and systematically pursue multiple small or medium-size acquisitions). According to partner Paul Daume and colleagues, even high-growth companies that did not pursue programmatic M&A as part of their dealmaking strategy were still outperformed by high-growth programmatic acquirers.
To read the survey, see “The seven habits of programmatic acquirers,” August 24, 2023.
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Visual form
Two-by-two performance matrix. It maps acquirer type against excess revenue growth and excess shareholder return.
Layout / body structure
The chart is laid out as a quadrant grid, with programmatic versus organic running vertically and negative versus positive excess revenue growth running horizontally. Reader uses the four cells to compare where different acquirer types land.
What is being compared
It compares organic and programmatic acquirers across the combination of excess revenue growth and median excess TSR.
Measurement system
The horizontal axis separates negative and positive excess revenue growth, and the vertical structure separates programmatic from organic acquirers. The chart is categorical and strategic rather than a time-series measure.
Visible structure inside the graphic
The visual uses a simple quadrant matrix with labeled sides and one cell for each combination of growth direction and acquisition style. That stripped-down structure turns the chart into a positioning map instead of a detailed trend graphic.
Main takeaway from the visual
Programmatic acquirers are positioned as stronger performers than companies relying only on organic growth approaches. The matrix is built to show that the favorable performance territory belongs more to the programmatic side.
Key standout values or extremes
The title supplies the decisive comparison by stating that programmatic acquirers tend to outperform organic ones. The most important visible contrast is which side of the matrix occupies the more favorable excess-TSR and positive-ERG combination.
Controls / sequence, when applicable
This is a static chart image with no in-chart controls to operate.
Companion media, when applicable
There is no separate companion audio or video; the chart image is the full visual on this page.