Full Steam Ahead for M&A Activity in 2016
According to KPMG’s latest survey of executives, it will be full steam ahead for M&A activity in 2016, so long as businesses get the fundamentals right.
While economists are still recovering from last year’s record-breaking M&A activity, dealmakers have already indicated that they expect to finalise even more acquisitions this year. Driven by cash reserves, confidence, credit, opportunities and improving equity markets, a staggering 91% of KPMG respondents have revealed intentions to initiate at least one acquisition – up significantly from 63% in 2014.
KPMG anticipates that the busiest industries in 2016 will be those characterised by transformation; namely pharmaceuticals, healthcare, energy, technology, consumer and media markets.
However, within the glowing findings of KPMG’s report comes a warning to those considering M&A. The vast majority of executive respondents were in agreement that a well-executed integration plan is the key to deal success this year. In fact, a well-executed integration plan was found within the survey to be more important to deal success than a correct valuation and positive economic conditions.
Preparing for perfect integration
Early planning and transparency are key to achieving a successful integration. A well-designed integration plan that focuses on risk and post-close opportunities can provide acquirers with valuable information that greatly enhances deal results. Importantly, as well as addressing risk and opportunity, an integration plan should include cultural and HR integration as well as products and services and the transformation of sales and marketing.
Successful integration is a difficult challenge that faces even the biggest industry giants’ right through to the small niche players. With representation throughout the Americas, Europe, Africa and Asia, Benchmark can connect you with the right opportunity. To find out more, visit http://www.benchmarkcorporate.com.