mergermarket surveyed senior decision makers at UK corporations on deal making, the general economic environment, their own firm’s M&A strategy and the issues surrounding critical information exchange in M&A transactions.
Against the backdrop of economic uncertainty and the global decrease in M&A activity, it is pleasing to see that some two thirds of those surveyed hold a positive view of the deal making landscape in 2010.
Although it may be some time before we witness the levels of recent years, many of those surveyed suggest that the main drivers behind this activity will be current depressed valuations and general opportunism together with more strategic acquisitions.
However, the survey also highlights the increasing trend of distressed driven M&A transactions and corporate restructurings, something that we at Intralinks are also witnessing. In fact, at Intralinks, we saw a 180 percent increase in the bankruptcy and reorganisation deals for the three month period ending Feb.15 2009, versus the previous three month period in 2008. Interestingly, in the survey over two thirds of respondents suggest the need for timely information during a corporate restructuring hightens the requirement for a virtual dataroom.
The survey also draws attention to some of the key issues surrounding the challenges for those involved in corporate M&A , with many on the buy side highlighting transparency and clarity of information as key issues. For those on the sell side, managing the process whilst maintaining confidentiality are key concerns.