|By PR Newswire||
|March 26, 2014 06:00 AM EDT||
NEW ORLEANS, March 26, 2014 /PRNewswire/ -- For the past three years, dealmakers have been increasingly bullish about deal activity, only to be disappointed by the tepid recovery in M&A. Will 2014 be the year the optimism proves correct?
According to the 7th Annual Brunswick Group M&A Survey, confidence in the global M&A landscape remains high for 2014, encouraged by greater confidence among CEOs and in the Board room, overall improving economic conditions and a buoyant stock market. With several mega-deals already announced in the first quarter of 2014, including Facebook's proposed $16 billion acquisition of WhatsApp, Comcast's proposed $45 billion acquisition of Time Warner Cable, and Actavis' proposed $25 billion acquisition of Forest Laboratories, advisors have reason to be encouraged.
Almost all North American-based advisors believe M&A volume will increase (83%) or stay the same (15%) this year. Dealmakers in Europe and Greater China are even more bullish on deal activity in their local regions than last year, with 72% and 74% of advisors polled, respectively, predicting an uptick.
The 7th Annual Brunswick Group M&A Survey polled over 160 top advisors from North America, Greater China, and Europe. Results were released ahead of the 26th Annual Tulane University Law School Corporate Law Institute, an annual gathering of the deal community that draws lawyers, bankers, Delaware judges and other market participants.
"On the back of a flat year in 2013, this year is off to a strong start, and the consensus among M&A practitioners is that deal activity is picking up," said Steven Lipin, senior partner, Brunswick Group. "The survey also revealed that dealmakers expect the use of stock as a currency to climb amid a buoyant stock market, and continued deal interference by activists."
Ripest Sectors for Consolidation
For the first time in several years, North American advisors see healthcare (73%) as the busiest sector for consolidation, up from only 14% in last year's survey of North American advisors, followed by longtime staple technology & telecoms (70%) and energy (43%). Advisors in Greater China also see technology & telecoms (67%) and healthcare (57%) as the two most popular sectors, while Europe-based respondents believe the technology & telecoms (60%) and financial services (40%) sectors are ripest for consolidation in 2014.
Domestic Deals to Drive U.S. Deal Flow
Nearly three-fourths (72%) of North American advisors expect domestic transactions among strategic buyers to make up the majority of the U.S. M&A market in 2014, similar to last year (71%). In terms of inbound activity, 58% of North American advisors believe the most inbound deals will originate in Greater China and expect more European buyers to be active in 2014 (36%, up from 23% last year), while only 3% expect buyers to be from Latin America (down from 11% last year). European advisors are anticipating an inflow of M&A investment from North America (72%, up from 61% last year), while Greater China advisors expect acquisitions by Chinese companies to be targeted toward Europe (46%) and Africa (27%).
Deal Interference from Shareholder Activists to Increase
The rise of shareholder activism is set to continue, with two-thirds of advisors or more expecting to see an increase in the level of deal interference by shareholder activists in 2014 (88% in Europe, 69% in North America and 64% in Greater China). Advisors in North America (39%) and Europe (52%) predict the most recurring demand among shareholder activists this year will be for spinoffs, sales or divestitures. Nine in ten (91%) of North American advisors believe companies will agree to put shareholder activists on their boards in order to avoid public fights.
More Deals to Use Mix of Cash and Stock
For the first time in five years, advisors in North America expect to see a decrease in the number of deals done with all cash (25%), driven by rising equity values. More than half of respondents (58%) predict that deals will use a mix of cash and stock, although there is an expected uptick in the number using all stock (17%). Almost two in three (63%) of advisors in Greater China believe they will see more deals using a mix of cash and stock, while 37% expect more deals using all cash. Advisors in Europe expect to see a decrease in the number of deals being done with all cash (38%) and growth in deals using a mix of cash and stock (58%).
Outward Expansion to Drive M&A Growth in China
Greater China-based deal advisors believe the primary drivers of M&A activity in 2014 will be the growing appetite among privately-owned Chinese companies (53%) and Chinese State Owned Enterprises (50%) for foreign expansion. Advisors believe Greater China acquirers will most likely invest in Europe (46%) or Africa (27%). Political tension in the Asia region is not expected to have a significant impact on intra-Asian deal activity in 2014, with half (46%) of Greater China advisors predicting a minor reduction in deal activity and almost as many (43%) anticipating no impact at all.
The survey was distributed to Brunswick's proprietary database of leading M&A advisors and consultants in March 2014. The results were analyzed by Brunswick Insight, the firm's specialist opinion research practice, focusing on understanding the views of opinion formers around the world.
The full survey results can be found on the Brunswick Group website at www.brunswickgroup.com/publications/surveys/.
About Brunswick Group
Brunswick Group is a private partnership with a growing team of more than 700 people, including over 100 partners around the world. The firm has grown organically since it was established in 1987 and currently has 22 wholly owned offices in 13 countries. Brunswick is the global leader in financial and corporate communications, and provides senior counsel to clients around the globe on critical issues that affect reputation, valuation and business success. The firm's service offer comprises corporate and financial communications, investor relations, internal communications and perception research. Brunswick operates offices in Abu Dhabi, Beijing, Berlin, Brussels, Dallas, Dubai, Frankfurt, Hong Kong, Johannesburg, London, Milan, Munich, New York, Paris, Rome, San Francisco, Shanghai, Singapore, Stockholm, Sao Paulo, Vienna and Washington DC.
SOURCE Brunswick Group
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Aug. 1, 2015 11:15 AM EDT Reads: 141
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Aug. 1, 2015 10:30 AM EDT Reads: 194
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 283
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Aug. 1, 2015 09:45 AM EDT Reads: 119
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Aug. 1, 2015 09:45 AM EDT Reads: 173
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
Aug. 1, 2015 09:45 AM EDT Reads: 381
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Aug. 1, 2015 08:00 AM EDT Reads: 1,684
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Aug. 1, 2015 08:00 AM EDT Reads: 300
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Jul. 31, 2015 11:45 PM EDT Reads: 784
Palerra, the cloud security automation company, announced enhanced support for Amazon AWS, allowing IT security and DevOps teams to automate activity and configuration monitoring, anomaly detection, and orchestrated remediation, thereby meeting compliance mandates within complex infrastructure deployments. "Monitoring and threat detection for AWS is a non-trivial task. While Amazon's flexible environment facilitates successful DevOps implementations, it adds another layer, which can become a ...
Jul. 31, 2015 10:15 PM EDT Reads: 313
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
Jul. 31, 2015 04:30 PM EDT Reads: 430
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jul. 31, 2015 03:00 PM EDT Reads: 498
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Jul. 31, 2015 11:45 AM EDT Reads: 139
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Jul. 31, 2015 11:45 AM EDT Reads: 125
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Jul. 31, 2015 08:45 AM EDT Reads: 305