Market Spotlight: Real Estate and M&A

31 March 2016

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Uncertainty in the world economy has put investors between a rock and a hard place, however; in this volatile environment, the real estate sector will be attractive to many buyers. Real estate M&A value reached an eight-year high in 2015, and in the coming 12 months is expected to rise to even greater heights.
 
According to this month’s Venue® Market Spotlight, 92% of survey respondents predict an increase in M&A activity in the real estate sector over the next year. As for drivers of activity, 80% think investors will seek real estate acquisitions as a safe haven amid stormy economic conditions.
 
RR Donnelley commissioned Mergermarket to interview professionals based in the US, Europe and Asia-Pacific to gain insight on their predictions regarding real estate M&A activity for the next 12 months.

Good Foundations: Building Healthcare M&A and Real Estate

05 April 2016

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The healthcare industry in North America is changing rapidly. Trends such as increased insurance coverage, the transition to value-based care, and the widespread adoption of new technologies are reshaping the sector. As companies strive to remain competitive, dealmaking is on the rise – the total value of North American healthcare deals rose 28% in 2015 to US$298bn. At the same time, with the urgent need to preserve revenue and invest in the future, healthcare firms are increasingly embracing an innovative way to raise capital: selling real estate assets to third-party capital providers, such as private equity, bond markets, or real estate investment trusts (REITs).
 
Duff & Phelps, the premier global valuation and corporate finance adviser, commissioned Mergermarket to interview industry professionals and gain insight on health industry dealmaking trends and third-party capital for healthcare real estate.
 
Key findings include:
 
  • Almost 90% of respondents expect healthcare M&A to rise over the next year. Respondents cited growing scale and rising consumer demand for healthcare as two primary drivers for M&A.
  • Medical devices are seen as the technology that healthcare companies will look to acquire most in 2016, with 68% saying they will do so. This was followed by cloud computing capability (47%) and data analytics (40%).
  • For healthcare providers that were facilities-based, the majority of companies that have sold real estate to third-party capital providers are happy with the results of their transaction (74%). Just 12% explicitly said they were unsatisfied, mainly because of lease terms.

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Monthly M&A Insider – April 2016

15 April 2016

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Perhaps inevitably, Global M&A at the beginning of this year has found itself cooling down after 2015’s record year of dealmaking, in what could turn out to be a sort of “rebalancing” in 2016. With total deal values reaching US$605.5bn, it was the lowest first-quarter value in two years, and down 22.9% from Q1 2015. Particularly notable has been the drop from the last three quarters, all of which saw activity worth more than US$1tn.
 
Highlights from the report include:
 
  • The quarter’s top sector, Industrials & Chemicals, housed the lead transaction involving China National Chemical Corporation’s US$45.9bn bid for Switzerland-based Syngenta AG.
  • One of the most significant trends of the first quarter has been the growing influence of Chinese bidders on foreign targets.
  • The US, with 1,001 deals worth US$241.5bn, continues to be the leading country in North America, accounting for 93.9% of total market share.
  • Even though Brexit looms over the UK, Europe is faring well with a total of 1,303 deals valued at US$174.6bn.

Medtech in Asia-Pacific

21 April 2016

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Open for business: M&A in Ukraine

25 April 2016

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Mergermarket is pleased to present the first edition of Open for Business: M&A in Ukraine, published in association with Aequo. This report provides invaluable insight into key trends in Ukraine’s M&A landscape, an outlook for 2016 and beyond.
 
Although deal volume slowed by 24% in 2015 to 26 deals, the expectation is that 2016 will show a marked improvement in line with legal and tax reforms, ongoing privatisations and consolidation in distressed markets.
 
Highlights from the report include:
 
  • Financial services was the strongest sector for deals. In 2014-15, it contributed 43% of total M&A value, up from 7% in 2012-13. More financial services deals are expected in 2016 as the banking sector continues to consolidate.
  • Energy, mining and utilities was the second largest sector by deal value. It made up 29% of all M&A in 2014-15 by value and 13% by volume. The main drivers were privatisation, distressed deals, falling oil prices and efforts to replace Russian gas supply.
  • TMT deals also featured prominently, with notable Ukrainian IT start-ups supporting the sector, making it attractive to both private equity and strategic investors.
  • E-commerce recorded growth rates of more than 30% in the last five years, and still retains significant upside potential as both internet penetration and online shopping’s share of total retail remain substantially lower than those of regional peers.

Toppan Vite – Banking on change

26 April 2016

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Industry consolidation, customer evolution and technological innovation are driving ahead M&A in US financial services in 2016. But as increasing regulation begins to bite and bigger deals are returning to the table, what are the right moves for corporates and sponsors to make?
 
Toppan Vite, a trusted financial printing and communications company, in partnership with Mergermarket, asked six M&A experts for their thoughts on the year ahead.
 
Points of discussion:
 
  • Which parts of the financial services sector are seeing the most consolidation and divestments?
  • Stringent capital requirements and its effects on M&A dealmaking.
  • How is the emergence of fintech affecting M&A activity in US financial services?
See more and subscribe to Toppan Vite’s Blog here.
 
Toppan Vite, a leader in financial printing, delivers a hassle-free experience for mission-critical content for capital markets transactions, financial reporting and regulatory compliance filings, investment companies and insurance providers. Part of the world’s largest printing company with over $13 billion in annual sales, we have the scale, financial strength and commitment to be the partner of choice for mission-critical transactions, any size, across the globe. Learn more at us.toppanvite.com

Learning the new language of shareholders

27 April 2016

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Management teams are facing a formidable new challenge in the growing ranks of activist investors. Rock star activists such as Carl Icahn and Bill Ackman of Pershing Square, are in the lead of a growing movement. While activists can bring innovation and discipline, companies are often caught off-guard by their approach, leading to major disruptions in their strategic plans.
 
In order to better help prepare firms for activist involvement, improvements in technology have allowed companies to easily reach stakeholders faster and more efficiently. Vintage commissioned Mergermarket to interview five industry professionals to discuss how shareholder practices are changing.
 
Points of discussion:
 
  • Trends, legal or otherwise, that are affecting shareholder communications.
  • How have social media and technology affected shareholder communications? How are you advising clients?
  • How can you take into account the views of an activist investor while maintaining corporate strategy and not alienating other shareholders?
  • Publishing CEO compensation and its ratio to “regular employees” goes into effect next year. What risks – and subsequent mitigation – are you expecting to address?

Market Spotlight: Re-coding the deal

28 April 2016

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As M&A activity has fallen off to start the year, companies are looking to take full advantage of the record amount of deal-making done in 2015. As transactions become harder to come by, the pressure is rising on companies to make the most of the deals they have already done. A successful integration is vital to achieving the growth promised by M&A, and in the modern world, IT is often the keystone to this process – expanded access to proprietary data, technology, and IT personnel can open countless doors for a newly combined company.
 
According to this month’s Venue® Market Spotlight, 32% of respondents cited IT integration as the most important part of PMI, while 56% cited it as a highly important aspect of the process. Furthermore, creating growth opportunities is the most important benefit to be achieved in the IT integration process, according to 36% of respondents.
 
RR Donnelley commissioned Mergermarket to interview professionals based in the US, Europe and Asia-Pacific to gain insight on their opinions regarding the integration of technology in M&A.

Aviation and Aerospace M&A Quarterly – Q1 2016

05 May 2016

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ICF International (formerly ICF SH&E) is pleased to present the eleventh edition of the Aviation and Aerospace M&A Quarterly, published in association with Mergermarket. The publication highlights M&A activity and trends in the aerospace, aircraft, airline, airport and tourism markets in Q1 2016.
 
  • Consortium led by OTPP acquires London City Airport from Global Infrastructure Partners.
  • Alaska Air Group agrees to acquire Virgin America for US$2.6bn and merge it with Alaska Airlines.
  • J.F. Lehman & Company agrees to acquire API Technologies Corporation for US$301m.
  • SJ Aviation acquires 50% stake in aircraft leasing company Keystone Holdings for US$11m

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