Monthly M&A Insider: April 2014

17 April 2014

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In looking at Q1 2014’s deal numbers, M&A activity is gearing up for a rebound or at least a notable uptick from 2013. The first quarter of the year saw overall M&A activity rise 39% in terms of deal value while the average transaction size rose 36% respectively. Aside from the overall climb in dealmaking activity, there were also a few key trends worth noting that occurred over this period.

Highlights include:

 

  • Private equity exits have been mounting with the overall deal value rising significantly in Q1 2014 from the same time last year
  • Globally the Pharma, Medical and Biotech sector showed an uptick by boosting their share of the market to 10% in Q1 2014 from merely 3% in Q1 2013
  • The number of deals in the Technology sector increased by 20% to 398 deals worth roughly US$58.3bn

Market Spotlight: Energy M&A and IPOs

30 April 2014

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Welcome to April’s Venue® Market Spotlight. This month’s edition focuses on Energy M&A and IPOs.

Mergermarket, commissioned by RR Donnelley, interviewed investment bankers based in the US who conveyed their optimism that deal-making in the energy sector is likely to see an increase in 2014. The demand for various forms of energy and a thriving IPO market provide solid ground for respondent predictions regarding an increase in energy M&A this year and beyond.

Toppan Vite- Dealing with exchange rates

30 April 2015

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he past few years have been characterized by a number of currency events – both long- and short-term – that have significantly impacted the business world. But what has been their effects on M&A activity? Toppan Vite, in partnership with Mergermarket, discussed this trend with five industry-leading experts.
 
Points of discussion:
 
  • The euro has been steadily falling in value while the dollar has become stronger—what are the implications for M&A activity on long-term trends such as these?
  • Regions that present the best M&A opportunities given the current differences in currency strength.
  • Given currency fluctuations, is it better to use cash or equity as currency for M&A transactions?
  • Impact currency fluctuations has on the financing of cross-border deals.

Intralinks Deal Flow Indicator: Q1 2014

01 May 2014

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Intralinks Deal Flow Indicator: Q1 2014

Intralinks Deal Flow Indicator: Q1 2014

01 May 2014

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Q1 2014 Intralinks Deal Flow Indicator – EMEA and APAC lead a recovery in deal volumes for 2014?

The Intralinks Deal Flow Indicator (DFI) tracks pre-announcement, early-stage M&A deals (sell-side M&A mandates and deals reaching due diligence) across the world, providing a unique predictor of changes in future M&A activity levels.

The Q1 2014 Intralinks DFI reveals conflicting trends. Quarter-on-quarter (QoQ) data indicates that early-stage M&A dipped by almost 1% in Q1 2014 compared to Q4 2013 – a not unexpected seasonal result. However, year-on-year (YoY) figures for Q1 2014 increased 16% compared to Q1 2013, indicating that announced M&A deal volumes this year will likely be more robust than in 2013. This is one of the insights you’ll read about in the latest issue of the Intralinks Deal Flow Indicator report, presented in association with Mergermarket.

Providing in-depth market analysis based on early-stage M&A across the globe, this quarterly report reveals exclusive and forward-looking intelligence on upcoming dealmaking trends.

Key findings of the Q1 2014 Intralinks DFI report:

  • On a QoQ basis, Asia-Pacific leads regions in terms of growth, with the Intralinks DFI up 10%EMEA ranks highest on a YoY basis, up 21%.
  • Private equity saw a 10% QoQ increase in both volume and value of deals in Q1 2014, fuelled by a move towards strategic exits to corporate players.
  • Five of the 10 biggest deals of Q1 2014 took place in the technologymedia and telecommunications (TMT) sector, where volume rose 5% YoY to 542 deals, and value increased 70% to US$179.9bn.
  • The healthcare sector is poised for further M&A activity.

The report also features regional snapshots of North AmericaEMEAAsia-Pacific and Latin America, a TMT spotlight, and a unique ‘Industry Indicators’ infographic, as well as guest commentary on the French M&A climate by BNP Paribas.

Financial Restructuring in Asia – Houlihan Lokey Quarterly Newsletter

14 May 2014

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Houlihan Lokey and Mergermarket are proud to present the fourth edition of their quarterly newsletter series on corporate finance topics for operating companies in Asia-Pacific. In this issue, we discuss the need for and intricacies of financial restructuring in Asia-Pacific.

With debt levels among Asian corporates reaching alarming highs, and as economic forecasts for Asia ex-Japan tumble to four-year lows, businesses across the region must consider restructuring their balance sheets to avoid insolvency. Undertaking a restructuring, however, is by no means a quick or ensured route to recovery. The reality is that an uncoordinated, unsupervised restructuring of corporate debt can throw a struggling company even further into uncertainty.

The complexity of restructuring means a number of factors need to be taken into consideration. Houlihan Lokey’s Brandon Gale, who heads the bank’s restructuring efforts, explains the steps necessary to raise the likelihood of a successful restructuring:

• Running an organized process with open lines of communication between the company and its creditors, and having a clear understanding of the motivations and goals of key stakeholders can set the stage for promising negotiations.

• A transparent flow of information to help creditors understand the current state of the business, prospects for the future, and what all this means for valuation and cash flow will help inform which strategic alternatives make sense to pursue.

• Avoiding restructuring under the purview of the court is ideal due to the added time, cost, and complexity of in-court processes. This is especially true in emerging Asia, where court systems and insolvency regimes in many jurisdictions are largely untested.

Data points and highlights within the newsletter include:

• Corporate bond sales trends across Asia-Pacific, specifically bonds denominated in G3 currencies (US dollars, euros, and yen);

• G3 currency issued debt by country across emerging Asia;

• A comparison of the recent restructuring of China-based LDK Solar and Suntech Power and the ramifications for creditors in each case.

Infrastructure in Australia

21 April 2015

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Clifford Chance and FTI Consulting, in collaboration with Debtwire, are proud to present their latest newsletter entitled “Infrastructure in Australia: Privatizations, partnerships, and investing alternatives”, focusing on the growing investment and partnership opportunities in the Australian infrastructure landscape.
 
The newsletter dives into the tremendous benefits of using private finance in the public sphere, the roadblocks to ensuring successful usage of private finance in public infrastructure projects, and the growing opportunities that are enticing investors to consider these as alternative models.
 
The Australian government has shown a clear commitment to creating a steady pipeline of investment ready infrastructure with the A$5 billion Asset Recycling Initiative. What this means is that unique partnership investment models have moved back onto the political agenda.
 
Key highlights include:
 
  • The categories of assets earmarked for sale include commercial property, public housing, bulk and commodity ports, and transmission and distribution networks.
  • The Federal Government sits on some A$13 billion of equity in government business enterprises and the National Commission of Audit has recently identified a number of entities considered suitable for privatization.
  • Deals have already been struck with the Australian Capital Territory and New South Wales, which will see the Federal Government contribute > A$2 billion to proposed new infrastructure projects including the Capital Metro PPP Project in ACT.
  • Allocation of risk between the public sector and the private sector is vital for successful partnership ventures, this includes demand risk.

Monthly M&A Insider: May 2014

16 May 2014

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Deal values rose in April 2014 as certain sectors witnessed an array of mega transactions. The total value of deals announced in April reached US$348.2bn, which is double that of April 2013’s figures (US$168.3bn).

Highlights include:

 

  • The Financial Services sector saw three large transactions from various parts of the world totaling approximately US$49.3bn
  • April M&A activity in North America saw 339 deals worth US$103.2bn
  • M&A activity in Asia-Pacific yielded 235 deals worth US$95.3bn, a 38% increase in value from March’s figures
  • Europe increased in overall value as transactions totaled US$132.1bn, up 83% from US$72.1bn in April 2013

Capital for Commerce – fuelling growth through non-bank lending

23 May 2014

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Commissioned by Grant Thornton UK LLP, this research gets to the heart of issues on financing and opportunities in non-bank lending. Responses were gathered from 110 UK-based, mid-market companies and 100 non-bank lenders that have or are looking to lend in the UK.

The report shows that appetites for non-bank lending are stronger than initially thought. Non-bank lending has progressed rapidly from a fringe activity to one widely considered normal by corporates, with an increased variety of product options previously only available to large corporates.

Market Spotlight: The M&A Revival

29 May 2014

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Welcome to May’s Venue® Market Spotlight. This month’s edition focuses on the M&A revival.

Mergermarket, commissioned by RR Donnelley, interviewed investment bankers based in the US who expressed hope for a sustained revival. With an eye toward growth, cash on hand and the backdrop of a stronger economy in their favor, companies are now ready to take on acquisitions, with some survey respondents believing that M&A numbers will see heights not even seen in the market pre-crisis.

Monthly M&A Insider – April

17 April 2015

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Global M&A in the first quarter has hit the ground running again fueled by the same steam that powered M&A to a post-crisis high in 2014. The first quarter of the year saw 3,213 deals valued at US$719.1bn increase 13% by value compared to Q1 2014. The largest deal of the quarter, Kraft Foods acquisition of HJ Heinz for US$54.5bn, will help to create one of the largest consumer companies and is a likely indicator of future activity in the sector.
 
Highlights from the report include:
 
  • Companies in the Energy, Mining & Utilities sector are seeking alternatives to M&A while they ride out low oil prices.
  • North American year-to-date activity has been driven by high-valued domestic transactions.
  • In Japan, the value of outbound M&A to Europe skyrocketed in the beginning of this year, with deals totaling US$10.2bn, 54% higher than the whole of 2014.

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