A greater yield: Attracting investment into Australian agribusiness

10 December 2014

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Australian agribusiness is poised to benefit tremendously from changing consumer tastes across Asia and globally. The ability to meet this demand will require a steady investment flow from foreign and domestic financial investors.

Highlighting this trend, Australian law firm Allens and Mergermarket proudly presents an analysis on investment opportunities in Australia’s agriculture in this exclusive report, A greater yield: Attracting investment into Australian agribusiness. Tackling a variety of topics in the agribusiness space in Australia, this report features an in-depth look at the country’s competitive advantages and disadvantages, financing solutions and potential funding models, as well as infrastructure and research and development needs.

Highlights from the report include:

  • Proximity to markets was the main attraction for investing in the Australian agribusiness sector, while climate variability was by far the greatest disincentive for investing in the sector.
  • 53 per cent of respondents said the traditional family-owned farm was not an appropriate model for Australian agriculture. Of those respondents, 56 per cent pointed to the lack of scale due to capital and manpower restraints.
  • 59 per cent of investors would consider a financing model for investing in Australian agribusiness, while 45 per cent would prefer the joint venture model.
  • 45 per cent of respondents said that research & development needed the most urgent government attention, followed by irrigation infrastructure.

Asia-Pacific M&A Barometer Issue 3

17 December 2014

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Ascent Partners and Mergermarket proudly present this newsletter on M&A trends in Asia-Pacific.  Our current issue recaps M&A activity, as well as private equity buyouts for Q3 2014 showing an increase in volume and value. Deal values regionally totalled approximately US$142bn with 847 deals for Q3 2014, exceeding Q3 2013, which had 766 deals worth US$130bn.

Additional highlights illustrated by proprietary Mergermarket data for Q3 2014 include:

  • Top three sectors by deal volume were: industrials & chemicals (21%); technology (15%); and business services (11%);
  • 55% of the region’s deal volume was in transactions valued below US$50m, while 38% was in the middle market range (those deals valued between US$51m and US$500m);
  • Private equity buyout values rose to US$27.1bn in Q3 2014, compared to US$17.1bn in Q3 2013.

Aviation, Aerospace & Airports M&A Quarterly Q3 2014

17 December 2014

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The third quarter of 2014 was a busy time for M&A across all three sectors according to the fifth edition of Aviation, Aerospace & Airports M&A Quarterly, published by global consulting firm ICF International in association with Mergermarket.

Highlights include:

  • Aviation M&A was largely driven by deals in the Asia-Pacific region
  • Private equity was drawn to specialist aerospace testing firms in Q3
  • Germany and Italy provided the backdrops for investment activity in the airport sector

2014 Canadian Goodwill Impairment Study

18 December 2014

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Mergermarket is pleased to present the third edition of the Canadian Goodwill Impairment Study in association with Duff & Phelps. The study presents an analysis of the overall developments and challenges in recognizing goodwill impairment (GWI) in Canada and includes a survey of 50 Canadian financial executives across a wide variety of industries.

Highlights from the report include:

  • The $8.9 billion of goodwill impaired by Canadian companies reporting under IFRS in calendar year 2013 was a notable increase (12.7%) from the $7.9 billion amount seen in 2012
  • A majority of respondents (56%) indicated that projecting cash flow is one of the most considerable challenges pertaining to goodwill impairment
  • Seventy-two percent of survey respondents recognized goodwill impairment in 2013. The survey results thus demonstrate that Canadian companies have seen a rise in goodwill impairments as only 16% of public companies and no private companies recorded an impairment in 2012

Market Spotlight: 2015 Deal-making Outlook

18 December 2014

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Deal-making activity is expected to rise in 2015, according to research conducted by Mergermarket.

In this month’s Venue® Market Spotlight, brought to you by RR Donnelley in association with Mergermarket, research shows different types of deal-making, ranging from global M&A to IPOs, will experience an increase in the upcoming year.

Monthly M&A Insider: December 2014

19 December 2014

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As the M&A market comes very close to year-end, there are some regional trends that are noteworthy in terms of global dealmaking activity. One such highlight is North America’s dominance in terms of deal value in 2014 – YTD North American M&A deals have reached US$1.4tn, comprising 48% of the total value of global M&A deals. Europe however, saw the highest share of deals among all regions raking in 5,266 transactions worth US$792bn.

Highlights include:

  • Latin American YTD deal value for 2014 totaled US$123.7bn compared to US$88.3bn during the same time last year
  • The top North American deal involved Actavis’ acquisition of Allergan, owner of Botox, for US$63.1bn
  • In Europe, a total of US$800.5bn worth of deals were signed YTD, a 37.7% increase on the same period last year and above any year since 2008

Monthly M&A Insider: H2 2014

26 January 2015

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M&A activity for 2014 surpassed previous years’ figures in terms of total number of global transactions. Last year there were 16,588 deals compared to the next highest year, 2007, that saw 16,060 deals. Many factors contributed to these hyper elevated levels of dealmaking to include the overall improvement of the economy that gave CEOs the confidence needed to execute deals and significant cash piles companies accumulated throughout the crisis.
 
In looking at the year ahead, the big question for dealmakers becomes whether the positive momentum of deal flow last year will continue throughout 2015.
 
Highlights include:
 
  • In Latin America, the most active sector was Consumer with 66 deals totaling US$4.3bn.
  • The top deal of H2 2014 was Actavis’ US$63.2bn acquisition of Allergan in the Pharma, Medical and Biotech sector.
  • Goldman Sachs topped the North American Financial Advisers League Table by volume and value with 136 deals worth US$381.2bn in H2 2014, a 30.5% increase in value from H2 2013 (US$292.1bn)

Inside Corporate – Wolf Theiss Corporate Monitor FY 2014

22 January 2015

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Mergermarket is pleased to present the third edition of INSIDE CORPORATE, a study of M&A activity in Central and Eastern Europe (CEE), alongside macroeconomic and legal developments, published in association with WOLF THEISS. Drawing from extensive data on CEE M&A trends, the report offers insight into the challenges and opportunities facing the region, as well as the outlook for 2015.
 
Key findings include:
 
  • While 2013 was a banner year for M&A in the region, activity dropped marginally in 2014, resulting in a decline in volume by 14% to 434 deals while value dropped 26% to €20.8bn. Dealmaking activity was partly weighed down by a slowdown in the eurozone’s economic recovery, particularly in Germany, and the impact of tensions between Russia and Ukraine.
  • Nevertheless, an improved global economic environment and cash-rich corporates, particularly from Asia and the US, supported inbound investment in 2014. Inbound M&A value increased 19% to €13.7bn YoY, despite a 12% drop in volume to 176 deals. This was the highest amount of foreign investment since 2010.
  • Sector trends: The industrial and chemicals sector saw the most deals in 2014 with 19% of total M&A. Meanwhile the real estate sector (22%) and the TMT and energy, mining and utilities sectors (21% each) made up the highest share of total M&A value.
  • According to Mergermarket’s Heat Chart, which logs the number of ‘company for sale’ stories announced over the past six months, the consumer and industrial and chemicals sectors will continue to be among the busiest in 2015, with 61 and 58 potential M&A targets, respectively.

Toppan Vite – The cutting edge

06 January 2016

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Deal value in IT was up 25% in the first three quarters of 2015, as the industry continued its evolution. But what constitutes a sound strategy in this fast-moving sector? What role do link-ups play, and how can established players compete with rising start-ups? Toppan Vite, in partnership with Mergermarket, asked three IT M&A experts for their thoughts on the year ahead.
 
Points of discussion:
 
  • Trend of large deals in the traditional IT space
  • Biggest challenges facing the IT industry across the market
  • How can IT companies compete with the new wave of start-ups?
 
 
See more and subscribe to Toppan Vite’s Blog here.

Distress and deceleration in China – Houlihan Lokey Quarterly Newsletter

15 January 2016

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China’s Shanghai Composite Index dropped 7% on the first day of trading in 2016, sparking a global selloff and renewing fears over the health of China’s economy, which slipped below 7% GDP growth in Q3 2015 for the first time since 2009. In spite of its slowing growth profile, China’s debt-fuelled economy has yet to embark on a process of deleveraging, compounding concerns over a credit bubble. This may generate an increase in corporate defaults as companies struggle to repay debt, especially in sectors hardest hit amid the slowdown, as indicated by escalating stress in the commodities, real estate and gaming industries.
 
Houlihan Lokey, in conjunction with M&A intelligence provider Mergermarket, takes a close look at corporate distress and debt restructuring trends in this exclusive thought leadership newsletter, “Distress and deceleration in China”.
 
Highlights and trends analyzed include:
 
  • Debt in China’s property sector continues to grow as an oversupply of unsold housing units causes further stress;
  • Trouble brews for commodities as prices continue to fall with diminished demand for construction materials and a global surplus of output;
  • Macau’s floundering gaming industry feels the backlash from China’s anti-corruption campaign; and
  • An exclusive interview with Brandon Gale, Head of Houlihan Lokey’s Asia Restructuring Practice, on considerations and key challenges for both debtors and creditors engaged in distressed restructuring efforts in emerging Asia.

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