CMS European M&A Outlook 2015

30 September 2015

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Mergermarket is pleased to present the third edition of European M&A Outlook – a study of European M&A activity, published by Mergermarket in association with CMS.

This year’s market research suggests that some of our respondents may be adopting a more cautious view on European economic growth for the year ahead. This sentiment perhaps resonates with the reality that, despite a clear rise in the overall value of M&A activity (up 17% in the first half of 2015), there was also a decrease in the total number of transactions being agreed.

Key findings include:

  • 60% of respondents are positive or very positive about growth in Europe. However, the percentage who are negative about growth prospects in 2015 (14%) has grown by 12 percentage points from the 2014 edition
  • Political uncertainty remains a key concern for European businesses, along with divided opinions on the depreciating value of the euro
  • TMT and industrial and chemicals are tipped by respondents to be the most sought after sectors, with Germany retaining its lead position as the busiest M&A market for the coming year
  • European businesses continue their trend of diversification looking for new sectors to expand into whilst remaining within familiar geographies
  • Investors and corporates are becoming increasingly creative in their attitudes to funding with private equity and non-bank lending being regarded as potential sources of financing showing a move away from traditional banks

Market Spotlight: Consumer M&A

30 September 2015

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Deal-making in the consumer market has managed to keep up with the records set in 2014 – and even in some senses, surpass it, according to respondents in September’s Venue® Market Spotlight. The advent of technology is forcing firms to get up to speed with the latest developments to avoid being left behind.

Elsewhere, rapidly evolving customer tastes and fashions, as well as a growing middle class in emerging markets, is making it necessary for consumer companies to adapt and exploit further opportunities.

RR Donnelley commissioned Mergermarket to interview professionals based in the US, Europe and Asia-Pacific to gain insight on their predictions for consumer M&A in the year ahead.

Toppan Vite PE

13 October 2015

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Private equity’s exit market has become increasingly receptive in recent years, with sponsors selling their portfolio firms at both record volumes and values. Yet as the public markets start to wobble and the number of companies fit for exit dries up, are these levels sustainable? Toppan Vite, in partnership with Mergermarket, asked four industry-wide experts for their thoughts.

Points of discussion:

  • How the IPO markets are holding up for exits given recent uncertainty surrounding China and the western markets’ reactions
  • Biggest challenges facing exits in the coming year
  • Trade sales saw a big increase in 2014 - how does this compare with 2015?

See more and subscribe to Toppan Vite’s Blog here!

Monthly M&A Insider – October 2015

10 October 2015

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Global M&A continues to grow reaching the highest point since the 2008 financial crisis. Rising M&A activity may be an alternative indicator of the evident global economic recovery. Since the peak of the crisis, global deal values have been growing each year suggesting improvement in the overall confidence. The first three quarters of 2015 saw 11,754 deals worth US$2.9tn compared to the same time period of 2014 which saw 12,772 deals worth US$2.4tn.

Highlights from the report include:

  • TMT maintains its position as the top leading sector with 2,146 transactions worth US$530.7bn followed by Energy, Mining & Utilities with 882 deals worth US$476.7bn
  • The US and Canada saw 3,823 deals worth US$1.5tn, which represents 52% of the total global market share
  • YTD activity for the UK saw an impressive increase in value with 993 deals worth US$254.1bn, exceeding the whole of 2014 that saw US$155.5bn worth of deals

 

M&A: Good practices & bad pitfalls

27 October 2015

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The process of conducting an M&A deal has altered substantially over the years. Yet, the basic pillars of how deals are done – targeting, negotiating, due diligence and integrating – have remained constant. Despite this, the rapid pace of change has seen these pillars take on new significance over time to include updates to technology, advent of online data rooms and changing tastes and macro trends.

With all these changes however, dealmakers have had to react accordingly in order to stay competitive in the M&A market and getting these processes down pat is key to any successful deal. With all these factors coming into prominence, Vintage commissioned Mergermarket to closely examine how the dealmaking process has changed.

Points of discussion:

  • What factors – both external and internal – are considered when determining a list of targets?
  • The negotiation and due diligence processes provide acquirers with the know-how of a company – how can acquirers make the most of this opportunity?
  • Key lessons to bear in mind in order to make the most of negotiations

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Market Spotlight: High Valuations

29 September 2015

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Valuations look set to continue to rise, at least in the short term, according to respondents in October’s Venue® Market Spotlight. Eighty percent believe that M&A valuations will rise in the coming 12 months while companies searching for deals will be willing to pay top dollar for assets they think will lead to growth, especially at a time when organic growth is hard to come by.

Factors such as cheap debt, poor organic growth prospects and building corporate cash piles have helped 2015 to become a banner year in terms of M&A. And, according to respondents at least, this could still be the case well into 2016.

RR Donnelley commissioned Mergermarket to interview professionals based in the US, Europe and Asia-Pacific to gain insight on their predictions for M&A valuation’s in the year ahead.

The cutting edge: Shaping the future of digital healthcare

04 November 2015

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Mergermarket is pleased to present The cutting edge: Shaping the future of digital healthcare, in association with White & Case. The report, which surveyed 120 US-based senior-level executives from life sciences and technology companies, finds that digital healthcare is playing an increasingly vital role in overall business strategy, with an overwhelming majority of respondents planning to increase their investment in digital healthcare over the next 18 months.

Life lines: Life sciences M&A and the rise of personalised medicine

08 November 2015

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Mergermarket is pleased to present Life lines: Life sciences M&A and the rise of personalised medicine, published in association with Reed Smith. The second report in Reed Smith’s Deal Dimensions series, Life lines explores the main drivers behind the avid pursuit for cross-border life sciences deals, the challenges faced in executing those deals, and how advances in personalised medicine may change the face of the industry.

Joining forces: The co-investment climate in private equity

12 November 2015

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Private equity (PE) firms are becoming increasingly hungry to offer limited partners (LPs) the chance to invest and are being more proactive than reactive, according to a new study Joining forces: The co-investment climate in private equity.

Pepper Hamilton commissioned Mergermarket to interview 50 PE executives from across the United States that have co-invested with an institutional investor within the previous three years (fund sizes managed by the interviewees were equally split between US$250m-US$500m and US$501m-US$999m). Interviewees were asked how co-investments fit into their respective portfolio’s makeup, and on what basis they are doing deals together.

Key findings include:

  • Over three-quarters (76%) of respondents cite regulatory scrutiny as one of the biggest challenges to co-investments, followed by lower returns for sponsors (56%)
  • Providing deal information to prospective LPs was seen by nearly half of respondents as the most common type of arrangement to keep PE and co-investor interest aligned
  • The deal term most often included in co-investment transactions — noted by 68% of respondents — is tag along rights, followed by the obligation to fund follow on investments proportionally (58%) and requiring a separate audit of the co-investment vehicle (52%)

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