Source: Deloitte Analysis CEOs of all major consumer product companies face the twin challenges of responding to the disruptive innovation threat in their traditional businesses, while simultaneously harnessing these same forces to create the businesses of tomorrow and capture growth. The magnitude of the challenge means CEOs need to consider M&A as a strategic enabler to capture innovation-led growth. In our point of view, we take a deeper look at some of the challenges and examine how companies are using M&A strategically to win the battle for the consumer.

1. M&A
Self-disrupt or self-destruct
Disruption in numbers

2. of Consumer Business companies, in
S&P 1200 index have made investments
or acquisitions in the disruptive
innovation segment
Disruption in numbers

3. Consumer Business companies, disruptive
M&A and Corporate Venture activity (2015-17)
Deal volumes
352deals
35%
65%
Deal values
$46bn
72%
28%
M&A Corporate venturing activity

4. Corporate Venture investments across
disruptive segments (volumes 2015-17)
M&A activity in disruptive segments
(volumes 2015-17)
Digital IoTSocial FinTech AI&ML Big Data
48 52
24 14
21 6
17 6
13 4

5. of the 25 largest Consumer
Business companies have
an active startup
investment vehicle9
1out of 5deals announced by the S&P
global 1200 CB companies
during 2015-17 was related to
Disruption Innovation category
$900m
funds committed by
Consumer Business
companies 2015-17
$125m
size of average corporate
venture fund raised by
Consumer Business
companies

6. during 2015-17 was related to
Disruption Innovation category
companies
Top
exits
Top
investments
Top
start up M&A
Top
convergence
M&A deals
Meituan Dianping
($4bn)
Lyft
($2.3bn)
Grail
($1.2bn)
Careem
($850mn)
GO-JEK
($550mn)
WePay
($350mn)
Datacert
($290mn)
Misfit
($260mn)
Clavis Insight
($140mn)
Olapic
($130mn)
Walmart – Jet
($3.3bn)
Dr Pepper Snapple – Bai
($1.7bn)
Unilever – Dollar Shave Club
($1bn)
Unilever – Seventh Generation
($700mn)
Amazon – Souq.com
($650mn)
Walmart – Jet.com
($3.3bn)
Unilever – Dollar Shave Club
($1bn)
UnderArmour – MyFitnessPal
($475mn)
Amazon – Annapurna Labs
($370mn)
Adidas – Runtastic
($245mn)
Most Active Corporate acquirers (2015-17)Most Active Corporate Venture Investors (2015-17)

7. GO-JEK
($550mn)
Olapic
($130mn)
Amazon – Souq.com
($650mn)
Adidas – Runtastic
($245mn)
Amazon.com
15
8
5
5
5 7
AccorHotels
27
26
Unilever PLC
6
Wal-Mart Store
Unilever
16
United Parcel
Service
Rakuten
13
Amazon.com
Lowe’s
Companies,
Inc
TripAdvisorBed Bath
& Beyond
Rakuten Inc
15
Most Active Corporate acquirers (2015-17)Most Active Corporate Venture Investors (2015-17)

8. Important notice
This document has been prepared by Deloitte LLP for the sole purpose of enabling the parties to whom it is addressed to evaluate the capabilities of Deloitte LLP to supply the proposed services.
The information contained in this document has been compiled by Deloitte LLP and may include material obtained from various sources which have not been verified or audited. This document also
contains material proprietary to Deloitte LLP. Except in the general context of evaluating the capabilities of Deloitte LLP, no reliance may be placed for any purposes whatsoever on the contents of this
document. No representation or warranty, express or implied, is given and no responsibility or liability is or will be accepted by or on behalf of Deloitte LLP or by any of its partners, members, employees,
agents or any other person as to the accuracy, completeness or correctness of the information contained in this document.
Other than as stated below, this document and its contents are confidential and prepared solely for your information, and may not be reproduced, redistributed or passed on to any other person in whole
or in part. If this document contains details of an arrangement that could result in a tax or National Insurance saving, no such conditions of confidentiality apply to the details of that arrangement (for
example, for the purpose of discussion with tax authorities). No other party is entitled to rely on this document for any purpose whatsoever and we accept no liability to any other party who is shown or
obtains access to this document.
This document is not an offer and is not intended to be contractually binding. Should this proposal be acceptable to you, and following the conclusion of our internal acceptance procedures, we would be
pleased to discuss terms and conditions with you prior to our appointment.
Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom.
Deloitte LLP is the United Kingdom affiliate of Deloitte NWE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). DTTL and each of its
member firms are legally separate and independent entities. DTTL and Deloitte NWE LLP do not provide services to clients. Please see www.deloitte.com/about to learn more about our global network
of member firms.
© 2018 Deloitte LLP. All rights reserved.
Designed and produced by The Creative Studio at Deloitte, London. J14400