SYS-CON MEDIA Authors: Esmeralda Swartz, Trevor Parsons, Pat Romanski, Elizabeth White, Yeshim Deniz

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.

@CloudExpo Stories
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at Internet of @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, will discuss how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money! Speaker Bio: ...
Compute virtualization has been transformational, yet security policy implementation and enforcement has lagged behind in agility and automation. There are a number of key considerations when implementing policy in private and hybrid clouds. In his session at 15th Cloud Expo, Holland Barry, VP of Technology at Catbird, will discuss the impact of this new paradigm and what organizations can do today to safely move to software-defined network and compute architectures, including: How normal ope...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: S...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff hap...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accel...
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customiz...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that ElasticBox is holding a Hackathon at DevOps Summit, November 6 from 12 pm -4 pm at the Santa Clara Convention Center in Santa Clara, CA. You can enter as an individual or team of up to 10 developers. A New Star Is Born Every Month! All completed ElasticBoxes will then be sent to a judging panel - 12 winners will be featured on the ElasticBox website in 2015. All entrants will receive five full enterprise licenses for one year + ElasticBox headphones + Elasti...
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT tranformation? In his session at 15th Cloud Expo, John Hatem, head of V...
Cloud services are the newest tool in the arsenal of IT products in the market today. These cloud services integrate process and tools. In order to use these products effectively, organizations must have a good understanding of themselves and their business requirements. In his session at 15th Cloud Expo, Brian Lewis, Principal Architect at Verizon Cloud, will outline key areas of organizational focus, and how to formalize an actionable plan when migrating applications and internal services to...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, will discuss how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP ...
Ixia develops amazing products so its customers can connect the world. Ixia helps its customers provide an always-on user experience through fast, secure delivery of dynamic connected technologies and services. Through actionable insights that accelerate and secure application and service delivery, Ixia's customers benefit from faster time to market, optimized application performance and higher-quality deployments.
SYS-CON Events announced today that Calm.io has been named “Bronze Sponsor” of DevOps Summit Silicon Valley, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Calm.io is a cloud orchestration platform for AWS, vCenter, OpenStack, or bare metal, that runs your CL tools puppet, Chef, shell, git, Jenkins, nagios, and will soon support New Relic and Docker. It can run hosted, or on premise and provides VM automation / expiry, self-service portals,...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, will focus on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud pla...
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue bu...
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce t...
As Platform as a Service (PaaS) matures as a category, developers should have the ability to use the programming language of their choice to build applications and have access to a wide array of services. Bluemix is IBM's open cloud development platform that enables users to easily build cloud-based, creative mobile and web applications without having to spend large amounts of time and resources on configuring infrastructure and multiple software licenses. In this track, you will learn about the...
Blue Box has closed a $10 million Series B financing. The round was led by a strategic investor and included participation from prior investors including Voyager Capital and Founders Collective, as well as the Blue Box executive team. This round follows a $4.3 million Series A closed in December of 2012 and led by Voyager Capital. In May of this year, the company announced general availability of its private cloud as a service offering, Blue Box Cloud. Since that release, the company has dem...
SYS-CON Events announced today that Verizon has been named "Gold Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Verizon Enterprise Solutions creates global connections that generate growth, drive business innovation and move society forward. With industry-specific solutions and a full range of global wholesale offerings provided over the company's secure mobility, cloud, strategic network...
SimpleECM is the only platform to offer a powerful combination of enterprise content management (ECM) services, capture solutions, and third-party business services providing simplified integrations and workflow development for solution providers. SimpleECM is opening the market to businesses of all sizes by reinventing the delivery of ECM services. Our APIs make the development of ECM services simple with the use of familiar technologies for a frictionless integration directly into web applicat...