Robust M&A activity can help a lot of businesses in New York and Alacra is one of them. So, at the beginning of every year I make a habit of reading a bunch of projections for the coming year. The past few years have been slow; the forecast for 2013 is mixed. One would think there would be more optimism with rates low and corporations having plenty of cash available. But that’s been the atmosphere since 2009 and the market has been listless. Let’s hope for a better 2013.
1) PwC Says Fundamentals are Strong for U.S. Mergers & Acquisitions Activity in 2013
“The fundamentals for sustained M&A activity in 2013 are solid, with improving corporate confidence, increasing private equity activity from both a buy and sell side perspective, and relatively healthy debt markets. There remains strong competition for quality assets as both corporates and private equity continue to seek out deals to fuel their growth and deploy capital,” said Martyn Curragh, PwC’s U.S. Deals Leader.
2) mergermarket Market Spotlight: 2013 M&A Outlook (PDF)
Many mergers and acquisitions (M&A) practitioners searching for deals in the past year were often left waiting for market conditions to improve. Through the first three quarters, 2012 set pace to drop 18% in global deal value and 9% in volume compared to the previous year, according to mergermarket research. According to the respondents of our December survey on 2013 M&A outlook, these numbers should rebound behind the strength of strategic buyers, the emerging markets, and the energy sector.
3) RBS Citizens Middle Market M&A Outlook 2013 (PDF)
As you will see form the report itself, a unique set of factors has coalesced to form a “perfect storm” of M&A activity; a slow yet improving economy, historically low interest rates, and a strong appetite among many businesses for growth through acquisitions. Along with this heightened activity comes both opportunities and challenges, more competition for quality acquisitions, the risk of cutting corners in due-diligence, and real choices about whether to “buy it” or build it.”
4) PEDaily.CN: M&A Outlook 2013: Economic Recovery Spurs M&A Activity (China)
Under such stimulus of the accelerated growth of China’s economy in 2013, Chinese [domestic] M&A market is expected to make a new breakthrough and create a new record. …China’s economy is full of growth power after the short-term downturn, adding the loose monetary policy and excellent internal environment; under the circumstances of both excellent internal and external environments, Chinese enterprises will accelerate the pace of their outbound investment strategies and be expected to create a new high in outbound M&As in 2013.
5) Media M&A in 2013: What’s at stake, what’s for sale and who’s buying?
Get your cheque book out, the boom times are back. OK, perhaps not, but right now is one of the most fertile times to be in the media mergers and acquisitions markets – with some very big brands up for grabs in 2013. Plus, M&A activity is back to pre-recession levels in the media and entertainment space – a broad category that encompasses TheMediaBriefing’s core audience of professional media brands, according to media investment bank Jordan Edmiston Group Inc’s annual rundown of M&A.
6) Tech buyers pull in their M&A plans for 2013
Even as 2012 is shaping up to be a lackluster year for tech M&A, next year could be even quieter. In 451 Research’s annual survey of corporate development executives, these buyers dramatically pulled in their acquisition plans for 2013. Just 38% of corporate shoppers said they would be increasing their M&A activity in the coming year – the lowest forecasted activity level in the six years of our survey.
7) Muted 2012 dampens M&A revival hopes in US
Conditions looked ripe for strong growth in US mergers and acquisitions volumes 12 months ago: the economy was growing, credit markets were open and private equity firms and companies had cash to spend. But a dealmaking boom failed to materialise, however, and few now expect 2013 to be much better.
8) Video: Mergers & Acquisitions Will Explode in 2013
An explosion of mergers and acquisitions is predicted in 2013 by Robert Profusek, Chairman of the global M&A practice at Jones Day. It’s a pessimistic time and actually that is a cause for optimism in the merger market. The basic conditions for M&A have been really fabulous for the last 18 months. But the market’s just been OK. It hasn’t been terrible, but it’s hasn’t been good. And I think it has been held back by all of the negativism that last year was primarily focused on the EU and this year it has been the attending to the fiscal cliff, the election and everything else. But the conditions are there. We need more M&A in this country.
9) More Mergers on the Horizon?
Even as the volume of regulatory-assisted acquisition deals declines, acquiring banks will soon enjoy new opportunities to expand by acquiring healthy banks.
10) M&A activity expected to see sharp jump in 2013: E&Y (India)
Mumbai: Although global uncertainties and domestic factors impacted mergers and acquisitions (M&As) in India in 2012, they are expected to see a sharp jump in 2013, to be driven mainly by cross-border activity, global consultancy firm Ernst & Young has said. “Deal activity declined by 8.1 percent as global uncertainties and domestic factors left an impact on Indian M&A in 2012. However, the momentum temporarily picked up in 3Q12 and expected to continue in 2013,” Ernst & Young said in its report on M&A here.