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Confidence Breeds M&A Buoyancy

Posted on October 7, 2015 By

At the start of 2015 the level of global deal making passed $3 trillion, 0.7% shy of the record set in 2007. Research by KPMG has found that the activity shows no sign of slowing as predictions have already been made surrounding global M&A topping $3.4 trillion by 2017. An increase of 26% based on the results from 2015.

According to the same bi-annual forecast by KPMG, global confidence in M&A deals is predicated to increase a further 11% and capacity for deals is to rise by 7% towards the end of 2016.

The question remains, if firms are looking to contribute to these record-breaking figures over the next 18 months by acquiring businesses, where would this confidence be placed and how?

This blog looks at the deals tipped to be most successful alongside the optimum timescale to completion.

Research published by Towers Watson last month looks at sector and global activity, focusing on succession and exit, showing that acquirers in medium sized deals – between $100m (£64m) and $1 billion – outperformed a global index of companies by 14 percentage points in the three months to September. The study also found that deals taking longer to complete resulted in a more successful financial performance than other firms. Takeovers that took 70 days or more to complete resulted in companies outpacing the rest of the market by 19 percentage points, compared with eight percentage points for quicker deals.

Statistics suggest the market is set to move quickly as deals across all industries are expected to begin within the next 12 months. However, it is important to remember that although trends can paint a picture, each company has its own unique fingerprint when it comes to the perfect time to sell and length of the sale cycle. Choosing an experienced partner like Benchmark International early in the sale process can ensure the introduction of a business to its perfect buyer at the perfect time.

To find out more about exit and growth strategies, visit http://www.benchmarkcorporate.com.

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