Cross-border M&A Shifting Focus Towards Emerging Markets
Intralinks recently commissioned mergermarket to conduct a survey of 160 Global M&A professionals, to gather their opinions on a number of issues including the post-global financial crisis, today’s economic and deal making environment, as well as the key challenges and opportunities market participants will face in the coming year.
Based on interviews with M&A practitioners from the advisory, corporate and private equity community in Asia-Pacific, Europe, North and Latin America, the report provides unique insight into the current global M&A market.
In a vote of confidence for the future of M&A, which for a time looked very bleak, respondents from all regions expressed a high level of optimism about the level of dealmaking to come. Indeed, 78% of all respondents expect the level of dealmaking in their region to increase over the next 12 months. Understandably, this level of confidence was even higher in the hard-hit North American market – here 89% of the region’s respondents felt deal flow would ‘increase’ or even ‘increase greatly’ over the year to come.
Private equity, one of the asset classes hardest hit by the economic downturn, is also predicted to make a comeback – 72% of respondents from all regions stated that they feel the level of buyout and exit activity is set to increase over the next 12 months. The many deals announced by private equity players across the world certainly pay testament to this prediction.
The research depicts interesting results in relation to principal deal drivers and constraints to M&A in the months to come, giving a clue as to the high level of uncertainty and worry that is still afflicting dealmakers the world over. Overall, 52% of the respondents stated that the improved market and financing conditions would act as the primary deal driver in the expected uptick in M&A activity. This sentiment was even more pronounced in North America, where over three quarters (78%) of respondents expressed this view.