Baltic M&A Monitor

27 March 2014

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Mergermarket is pleased to present the third edition of the Baltic M&A Monitor in association with Raidla Lejins & Norcous. This report provides a detailed look at M&A activity in Estonia, Latvia and Lithuania, along with forecasts for the 12 months ahead.

According to the report, the Baltics saw a four-fold increase in M&A value in the past year, with €1.1bn worth of deals in 2013 compared to €311m in 2012. This was despite no change in the overall volume of deals in the region (51) and a 12% drop in M&A values across Europe as a whole.

Highlights from the report include:

  • The year-on-year growth in Baltic M&A value hinged largely on the €782m investment into AB Ukio Bankas by Lithuanian bank Siauliu Bankas AB, which points to the importance of domestic restructuring among the Baltic regional banks to the wider M&A landscape.
  • The Financial Services and TMT sectors played an important part in boosting recent deal flow, accounting for 60% and 17% respectively of aggregate deal value in 2012-2013. On the other hand, the Energy sector’s share of deal value declined from 57% in the 2008-2011 period to just 3% in 2012-2013.
  • Deal volume in 2013 was also distributed more evenly across the three Baltic states than in previous years. Latvia, which typically trails behind Lithuania and Estonia in terms of M&A volume, is starting to account for a larger share of the region’s M&A activity.

Market Spotlight: North American Outbound M&A

27 March 2014

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Welcome to March’s Venue® Market Spotlight. This month’s edition focuses on North American outbound M&A.

Mergermarket, commissioned by RR Donnelley, interviewed investment bankers from the largest North American markets – US, Mexico, and Canada – to examine what the drivers of outbound deal-making are for these countries. While respondents generally expect North American outbound M&A to increase, the reasons behind it vary by country.

William Fry Irish M&A Annual Review 2013

01 April 2014

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Mergermarket is pleased to present the third edition of the William Fry Irish M&A Annual Review. This report provides a comprehensive overview of developments in the Irish M&A market during 2013, and offers insight into likely trends in the year ahead.

2013 was a year that saw consolidation of the recovery over recent years in the M&A market. Deal volume edged up 3% year-on-year (YoY) to 82 deals, although value dropped 26% to €18.9bn over the same period.

Highlights from the report include:

  • Significantly, deal volume in the >€500m range doubled from 2012 to 2013 thanks to a flurry of inboundstrategic acquisitions. This included the €6.5bn acquisition of Ireland-based Warner Chilcott by US-based pharmaceutical company Actavis– in the year’s largest Irish M&A transaction.
  • Activity was most pronounced in the pharma/medical/biotechtelecomms/media/technology and financial services sectors, all of which saw an influx of foreign buyers targeting Irish firms for their technological capabilities, growth potential and lucrative client bases.
  • Buoyant M&A activity did not extend to private equity. In 2013, buyout value dipped to €251m, the lowest point since 2008, while exits remained languid, with just four deals compared to 2012’s five.

Monthly M&A Insider – June 2015

19 June 2015

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May was relatively quiet on the M&A front this year. Global deal values rose slightly to US$348.1bn, up 14.5% from April’s US$304bn, and 27% from May 2014’s US$274.1bn. Conversely, volume fell to 984 deals, down 8.5% from April’s 1,075 transactions, and 30.9% from May 2014’s 1,425 deals.
 
Highlights from the report include:
 
  • The US hosted the most global M&A transactions, sweeping eight of the top 10 spots, adding up to US$175.6bn, or 50.4% of the month’s total value.
  • Brazil, the most active country by volume, showed a slight rebound in May despite its overall weak economic outlook, with 12 deals worth US$2.1bn.
  • Inbound activity targeting European companies has increased reaching US$16.2bn, a 33.9% increase compared to May 2014.

The right combination: Managing integration for deal success

03 April 2014

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Mergermarket is pleased to present The right combination: Managing integration for deal success, a study of post-deal integration strategies, published in association with EY.

In cooperation with EY, Mergermarket interviewed 200 senior corporate executives involved in the deal integration process. The results provide vital insights into what is driving M&A in the current market, and how the rationale for a deal impacts on the integration strategy.

Findings include:

  • The integration of Sales and Marketing, and Operations are a key post-merger focus, with the survey showing that the integration of these functions is the most important for increasing growth and scale.
  • Four-fifths (84%) of respondents say growth is the main reason for undertaking M&A.
  • Operational experience is regarded as the most important quality for an integration manager, cited by 86% of those surveyed.
  • Companies, on average, spend 14% of deal value on integration. Average deal size over the past 12 months was €256m (US$366m), suggesting that integration costs per deal reach €36m (US$50m).

Steering Successful Growth: Value Capture in M&A Steering Successful Growth: Value Capture in M&A

25 June 2015

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Corporate deal-makers reveal important differences between successful and unsuccessful deals in a recent study developed by Crowe Horwath LLP, Steering Successful Growth: Value Capture in M&A. Crowe commissioned Mergermarket to interview 100 U.S. corporate executives about some of their most recent deals – looking at what the acquiring companies set out to achieve, the processes they used, and whether they deemed the deals successful or not in terms of capturing value.
 
Key findings include:
 
  • The successful transaction professionals succeed in prioritizing resources and effort around highest value-capture initiatives 91 percent while their less successful peers only achieved this 67 percent of the time.
  • Half of successful deal-makers used an integration scorecard compared to only 37 percent of unsuccessful ones.
  • Only 11 percent of successful deals were cross-border, compared with 33 percent of unsuccessful deals. This report will provide insight into the paths taken by successful acquirers and provides in-depth perspective from Crowe on challenges of commercial synergy value capture and over-coming cross-border pitfalls.

Global Insurance M&A Outlook

08 April 2014

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Since the financial crisis, there has been tepid M&A volume in the insurance sector. Despite the muted numbers, respondents in the inaugural Global Insurance M&A Outlook, sponsored by Mayer Brown LLP in association with Mergermarket, are optimistic that there will be an uptick in activity over the next 12 months.

The report is based on survey responses from insurers and reinsurers in the life and/or P&C subsectors, as well as bankers and private equity practitioners who have worked on insurance M&A transactions.

Key findings include:

  • For half of respondents, one of the most important alternative growth strategies will involve the development of new distribution channels
  • The majority of respondents (85%) say they will finance their acquisitions using their balance sheets, reflecting the strong capital position of many insurers
  • Respondents believe alternative asset managers and/or private equity firms will be among the most active buyers driving M&A in the life (68%) and P&C (71%) subsectors over the next 12 months

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.

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