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KPMG M&A Pulse: 2017 - A Solid M&A Year Predicted


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2016 was an active year for M&A; 83% of those surveyed completed at least one acquisition this year while 65% completed multiple acquisitions. More:

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KPMG M&A Pulse: 2017 - A Solid M&A Year Predicted

  1. 1. India Eastern Europe (not including Russia) Brazil Middle East/Africa Australia/New Zealand South America (not including Brazil) North America (not including USA) Asia (not including China or India) China Western Europe United States 10 20 30 40 50 60 70 80 © 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. In which regions/countries will your company/fund primarily invest in 2017? U.S. a favored investment with Western Europe following in 2nd place... In your opinion which of the following industries do you think will be the most active overall in 2017? Tech and Oil & Gas- highest levels of M&A... 45% Technology 28% Oil & Gas 22% Pharmaceutical/ Biotechnology 12% Healthcare 11% Media/ Telecomm Not all deals made it to completion... If your company/fund started an acquisition process, but did not complete a deal in the last18 months, what is the primary reason the deal failed? * Due to multiple responses or rounding, not all responses add to 100%. 83% 84% 2016 was an active year for M&A... 6% Financial Services Approximately how many acquisitions will your company/fund have completed or plan to have completed? 0 6 12 18 24 1 2 3 4 5 6 7 8 9 10 or more 0 Number of acquisitions Percentageofrespondents 25% 17% 14% 40% “The fundamentals for a strong deal market continue to persevere, with corporates holding record amounts of cash and interest rates remaining historically low. The C-suite recognizes that acquisitions can enhance their current business models and platforms and reduce the time to market,” said Dan Tiemann, KPMG’s U.S. lead for Deal Advisory and Strategy. Valuation issues Loss due to a competitive bidding situation Financial issues revealed during due diligence Operational issues revealed during due diligence Management issues or lack of fit Recent regulator changes Changing industry specific conditions Changing macro economic conditions 10 20 30 40 36 22 11 11 9 4 4 3 of those surveyed completed at least one acquisition in 2016, and 65% completed multiple acquisitions expect initiate a deal in 2017 and almost 75% of those surveyed plan on doing multiple deals Limited organic growth options Need to address the transformation in the marketplace/existing business models Availability of credit on favorable terms Large cash reserves/commitments Shifting consumer demands Improving equity markets Opportunities in emerging markets 2% 1% 1% Which factor do you think will most strongly drive deal activity in 2017?? Deals will be motivated by organic growth... Previous Data 2017 kpmg 2017 - A SOLID M&A YEAR PREDICTED