A survey of 150 corporate executives and investment bankers, to gauge their outlook for the merger and acquisition (M&A) market over the next 12 months, and to gain insight into the role of corporate development in M&A has revealed a largely positive outlook.
The survey, conducted by mergermarket and commissioned by Merrill DataSite found that overall, the respondents’ outlook for M&A over the next 12 months is largely positive. More than three-quarters of respondents (76%) expect deal volume to increase, and 65% expect the same of deal values.
Expectations for the financing market are slightly more tempered however, with 67% describing themselves as “cautiously optimistic”. This is to be expected given the unique pressures placed on today’s marketplace, including sovereign debt crises in Europe, historic stock market volatility in North America and sweeping regulatory changes in the global financial sector.
Different organisations seem to have markedly different approaches to corporate development, particularly when it comes to managing M&A activity and allocating responsibilities. While 50% of executive respondents maintain that corporate development officers are actively involved in post merger integration (PMI), 38% say PMI is entirely separate from corporate development. Furthermore, 35% of respondents say industry knowledge and experience are critical to a corporate development team’s effectiveness, while most remaining respondents say M&A knowledge and experience (29%), and involvement in broader operations (25%) are more important.
In addition to the findings above, this report looks at the most significant challenges facing corporate development teams when it comes to M&A, including the most pressing PMI issues and the greatest concerns surrounding financing and regulatory hurdles.
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