Welcome!

News Feed Item

Confidence in Global M&A Activity Remains High, Says 7th Annual Brunswick Group M&A Survey

- Healthcare, Technology & Telecoms Expected to Lead Deal Activity in North America -

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.

Contact
Christopher Beattie
[email protected]
+1 212-333-3810

SOURCE Brunswick Group

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-security...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...
FinTechs use the cloud to operate at the speed and scale of digital financial activity, but are often hindered by the complexity of managing security and compliance in the cloud. In his session at 20th Cloud Expo, Sesh Murthy, co-founder and CTO of Cloud Raxak, showed how proactive and automated cloud security enables FinTechs to leverage the cloud to achieve their business goals. Through business-driven cloud security, FinTechs can speed time-to-market, diminish risk and costs, maintain continu...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence a...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that’s no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, will explore how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He wi...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, discussed new ways of thinking and the approaches needed to address the emerging challenges of security i...
Docker containers have brought great opportunities to shorten the deployment process through continuous integration and the delivery of applications and microservices. This applies equally to enterprise data centers as well as the cloud. In his session at 20th Cloud Expo, Jari Kolehmainen, founder and CTO of Kontena, discussed solutions and benefits of a deeply integrated deployment pipeline using technologies such as container management platforms, Docker containers, and the drone.io Cl tool. H...