Deal Drivers EMEA Half-Year 2015

11 August 2015

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Mergermarket is delighted to release the full-year editions of Deal Drivers EMEA and Deal Drivers Americas, in association with Merrill DataSite.

The report provides an in-depth review of M&A activity seen so far in 2015, offering key insights into how announced deals in the first half of 2015 will impact M&A for the remainder of the year.

Highlights from the report include:

  • Europe has become a global hotspot for megadeal activity, with deals above the €5bn-mark in H1 2015 making up 46% of total deal value, amounting to €191.7bn – a 47% YoY increase in deals of this type.
  • Valuations in Europe are up, creating a strong environment for private equity exits. Exit value in H1 2015 was up 14% at €64.9bn, while exit volumes rose by 17% to 436 transactions.

Aviation and Aerospace Quarterly Q2 2015

13 August 2015

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M&A activity across the aerospace, aircraft, airlines and airports sectors remained robust in the second quarter according to the eighth edition of Aviation and Aerospace M&A Quarterly, published by global consulting firm ICF International in association with Mergermarket.

  • Aircraft leasing transactions continue to dominate into Q2
  • Airlines moving forward in experimenting with alternative fuel
  • PE firms active in more than US$1.3bn worth of M&A activity in aerospace

Market Spotlight: European M&A post Greece

01 September 2015

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European deal-making is expected to increase in the wake of an agreed Greek bailout program, according to nearly two-thirds of respondents in August’s Venue® Market Spotlight. For some respondents, the boost in activity would come as the rest of Europe can shift focus away from Greece.

In the long-term, respondents cite political reform as a key element required for Greece to improve deal-making.
RR Donnelley commissioned Mergermarket to interview professionals based in the US, Europe and Asia-Pacific in August 2015 to gain insight on the future of European M&A.

Half-time lead: Deloitte 2015 IPO market update

04 September 2015

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IPOs achieve high marks as the class of 2014 and 1H 2015 listings continue to outperform by a margin

Following a year of record listings in 2014, initial public offerings (IPOs) on the ASX have settled into more modest territory. At the close of the first half, floats on the ASX raised $2.5bn through 30 IPOs, more than the 22 listings in 1H14, but far less than the $4.6bn in funds raised during that period. Despite these differences, half-on-half comparisons show that debut growth has improved, and with market fundamentals largely unchanged, IPO proceeds should find it easier to meet their targets going into the second half of 2015.

Following on from the release of Deloitte’s 2015 IPO report ‘Surf’s up’ in March this year, Deloitte Australia, in conjunction with M&A intelligence provider Mergermarket, takes a closer look at market activity, hot sectors and corporate performance for the last six months in this exclusive thought leadership newsletter, “Half-time lead”.

Highlights and trends include:

  • Of the 48 listings as of 21 August 2015, 21 had market capitalisations in excess of $75m, generating an average share price performance gain of 7.2%. In comparison, the ASX 200 has continued to be subject to market volatility on the back of international uncertainty, declining 4.1% over this period;
  • Technology, media, and telecommunications (TMT) led listings for 1H15, accounting for 47% of listing values and 27% of all IPOs, as favorable conditions add to confidence among tech companies and financial sponsors that an IPO presents an attractive option to raising growth capital;
  • The majority of listings for the class of 2014 show impressive growth. The average performance of all companies that listed in 2014 over the course of the first half of 2015 was 12.7%;
  • Private equity-backed listings generated $1.7bn and accounted for 67% of total listing values for the half year.

 

Investing in emerging Asia’s renewable energy future - Houlihan Lokey Quarterly Newsletter

08 September 2015

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The Asia-Pacific region continues to increase its share of global renewables M&A, accounting for 23.2% of worldwide deal values in 2014 and 36.8% as of H1 2015. Acquisitions of wind, solar, and other renewable energy assets reveal a robust and growing market, with deal values almost tripling from US$5.4bn to US$15.9bn between 2012 and 2014. In the first half of 2015, values maintained their momentum, reaching US$8.5bn and raising expectations that activity will continue trending up, particularly in China, India, and the region’s emerging markets.

Houlihan Lokey, in conjunction with M&A intelligence provider Mergermarket, explore M&A and investment trends within the clean energy sector in the exclusive thought leadership newsletter “Investing in emerging Asia’s renewable energy future”.

Highlights and trends analyzed include:

  • Increasing M&A activity as confidence in new technology and government support rekindle interest and create new opportunities for investors;
  • Acquisitions in China and India, which combined accounted for 71.2% of M&A values since 2012;
  • Solar and wind power M&A as drivers of investment in clean tech;
  • Opportunities for foreign investors and best practices in navigating regulatory barriers in emerging markets;
  • Using YieldCos and other investment vehicles as a source of financing;
  • An exclusive interview with Houlihan Lokey Director Jeffrey Wilson and Co-head of Energy Group Matthew Mazzucchi, and David Richardson of Avista Advisory on the current market for renewables M&A and outlook for the year ahead.

 

Making the break: Selling and disposing non-core and under-performing assets in Japan

10 September 2015

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Economic uncertainty and disruption from market competitors are placing higher demands on Japanese corporates to be nimble and adaptable. Yet those with a diverse corporate portfolio, the result of years of acquisitions in domestic and foreign markets, may find it difficult to remain agile. Many may even have loss-making or under-performing business units draining resources. As a result, these corporates are increasingly using divestitures to scale back in certain sectors and bolster activity in others as they reassess their long-term business objectives.

This thought leadership publication released by Deloitte, in partnership with Mergermarket, titled “Making the break: Selling and disposing non-core and under-performing assets in Japan” explores how corporations in Japan – including domestic corporations and their multinational counterparts – are approaching divestitures as business leaders contemplate the pros and cons of selling and splitting off assets.

Highlights and analysis from “Making the break” include:

  • 90% of survey participants said they had completed at least one divestiture within the past 12 months, and of those 15% said they had completed two or more such transactions;
  • 49% of respondents said they had completed the sale of a majority or wholly-owned subsidiary, while 45% said their divestiture involved the sale of an equity method investment;
  • Selling an asset that was not a core business in the company’s overall business strategy was the top driver of divestitures (44% of respondents), followed by 21% who said they sold non-core or under-performing assets to fulfill financing needs;
  • When divestitures failed to close, respondents said it was due to a lack of preparation of management teams (35% of respondents) and the operational complexity of the business (30%);
  • In terms of preferred buyers, respondents favored Japanese acquirers (corporates, trading houses, and private equity firms) over their foreign counterparts;

 

Mid-Market: The Crux of North American M&A Newsletter

17 September 2015

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Mid-market dealmaking in North America is thriving this year – but what factors are driving this unprecedented boom? Mergermarket, on behalf of virtual data room provider Firmex, interviewed five leading experts for their take on what’s moving in the mid-market in the newsletter Mid-Market:The Crux of North American M&A.

Points of discussion:

  • Attractiveness of mid-market technology companies
  • How mid-cap acquirers are coping with competition from larger companies
  • The impact of BDC’s and other financing initiatives on mid-market M&A
  • Asia-Pacific companies’ attraction to North America

Monthly M&A Insider – September 2015

18 September 2015

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Despite the sell-off in global markets due to concerns of China’s economy, M&A activity has not really been affected. While the summer months tend to be slower for M&A activity, the month of August has been quite busy. Globally, August saw 952 deals worth US$297.8bn, the highest valued August in Mergermarket history. Global M&A was up 12.7% by value in August 2015 when compared to the same period last year. Year-to-date 2015 has also been the highest valued first eight months to start a year since 2007 when there were 10,836 deals worth US$2.7tn through August and is the second highest valued eight months on Mergermarket record.

Highlights from the report include:

  • Global buyouts in August saw 102 deals worth US$46.9bn, up 89.1% compared to August 2014
  • The top sector for August, with a 25.7% market share, was Industrials & Chemicals with 203 deals worth US$76.6bn
  • Cross-border and domestic M&A activity were up 1.2% and 13.1% respectively with 359 cross-border deals and 600 domestic deals

Chinese investment in Australia - Kroll Quarterly M&A Newsletter

22 September 2015

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China has become Australia’s chief source of approved proposed investment, supplanting the United States for the first time as the country’s top foreign investor. Chinese investment in 2014 increased 75 percent, from US$11.3bn in 2013 to US$19.7bn. According to Mergermarket data, Australia saw 2014 close with 20 announced M&A deals worth US$3.7bn from Chinese bidders, down from US$4.8bn in 2013, but at nearly twice the deal volume. Activity in H1 2015 kept pace with 2014, closing with 10 announced deals grossing US$1.8bn, though the outlook for the rest of the year appears clouded amid economic uncertainty.

Kroll, the global leader in risk mitigation and response, has once again teamed up with Mergermarket to analyse the challenges and potential of Chinese investment in Australia in the latest edition of their Spotlight Asia series.

This issue seeks to understand the shifting dynamics of Chinese investment into Australia, replete with both risks and rich rewards at every turn. It includes an in-depth interview with Violet Ho, Senior Managing Director, and Richard Dailly, Managing Director at Kroll, who discuss the most urgent risks of cross-border deal-making, offering insights on conducting pre-transactional due diligence on potential foreign investors.

Trends and highlights in the newsletter:

  • In 2014, China’s outbound direct investment soared to a record high of more than US$100 billion, a large portion of which has been focused on its southern regional neighbour Australia.
  • In M&A, the traditionally favoured mining sector came up tops again in 2014, but there has been a shift away from headline-making mega deals towards an emphasis on value, channelling demand towards efficient, high-quality mines.
  • In agriculture and agribusiness, Chinese investor interest is driven by anxieties surrounding food security and safety, generated by a rising number of food scares and scandals in China. To improve on its inspection of foreign farmland purchases, the FIRB lowered its vetting threshold from AU$252 million (US$179.6 million) to AU$15 million (US$10.7 million), with effect from 1 March 2015.
  • According to Richard Dailly, Managing Director at Kroll, pre-transactional due diligence is “vital to achieving an alignment of interest between the different parties, enabling each side to become more aware of who they are really dealing with and to make astute, better-informed decisions in the interests of a sustainable, risk-managed transaction and relationship.”
  • Violet Ho, Senior Managing Director at Kroll, points out that seller diligence on the acquirer offers “an invaluable window of opportunity for the sell-side to verify and validate what it considers attractive in the potential deal, such as the financial standing of the buyer, certain clauses in the contract, or the ability of the buyer to pay the consideration.”

 

Toppan Vite- Telecoms M&A

22 September 2015

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The telecoms sector is undergoing substantial changes, as the industry players get to grips with fast-evolving technology, tough regulators and changing consumer tastes. But how are these factors changing M&A? Toppan Vite, in partnership with Mergermarket, asked four industry-leading figures for their thoughts.

Points of discussion:

  • The effect of antitrust concerns, particularly in Europe, on telecom dealmaking
  • Company responses to consumers’ increasing preference for bundled telecoms and TV services and its effects on dealmaking
  • Drivers behind the spate of megadeals this year to include the BT EE, Alcatatel-Nokia and Charter Comms-Time Warner deals

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

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