Cerulli said mid-sized firms with between $10 billion
and $50 billion in assets under management were the most
likely to fall short after a merger or acquisition.
Ironically, those firms have traditionally been the most
sought after merger targets.
One reason for the long-term performance dropoff: Firms
did not properly consider the intangible aspects of a deal,
like keeping and motivating high-quality staff, Cerulli
said in a Thursday press release.
Non-US firms seemed to be better buyers than US peers,
regardless of whether US or non-US targets were examined,
the firm added.
Cerulli said two-thirds of British M&A target firms
grew quicker after a deal than the country’s fund
management industry as a whole, but did not ultimately beat
However, Continental European buyers tended to grow new
asset subsidiaries faster than general industry, Cerulli
The survey covered more than 300 merger and acquisition
deals since 1990 in the US and Britain.