Will merger mania continue in 2016? Asia Pacific’s M&A boom continues Mergers and acquisitions dominated markets in 2015 Oil Shakeout, Corporate Breakups Drove Merger And Acquisition Activity In 2015 SOE reform could see more merger activity among Chinese state firms The boom is back: M&A reemerges as leading growth strategy. Conclusion: an active 2015 for corporate transactions M&A rise set to continue Markets Preview: Merger Activity Enlivens Wall Street
With headlines like these there was little doubt about the trend. In 2014 M&A came back globally, with the highest numbers and value of deals since before the Global Financial Crisis. Interest rates remained at historic lows, credit markets were healthy, companies had abundant cash reserves and in many regions, employment numbers continued to improve. Investment banks, legal firms and consulting firms hired M&A specialists again in droves.
And 2015 didn’t disappoint – becoming officially the biggest year ever for mergers and acquisitions globally. Whilst the first half activity for 2016 has dropped off significantly in the UK and South America, the Middle East, Africa, Japan and China are powering ahead and the US is on a slow and steady pace for a strong year. It looks like dealmaking is here to stay, at least for awhile.
The question remains: how prepared are organisations to make the most of this trend? The cycle of building specialised M&A support capability in house and then letting people go when deals dry up means that many organisations are short handed when it comes to having internal resources who have “been there, done that”. And there is no substitute for the combination of experience, robust deal discipline and early preparation.
How ready are you for your next deal? Test your M&A Capability and see what you learn.