February 13, 2013

Study: M&A a Top Investment Priority for CEOs

According to PwC’s 16th Annual CEO Survey released recently, US CEOs are more intent on M&A in 2013 than their global peers, and they’re concentrating on consolidation and expansion in the US market. Among the key US M&A findings of the survey:

– Forty percent of US CEOs consider M&A/joint ventures/strategic alliances to be a top investment priority; and 42% of US CEOs say they’re planning to complete a domestic deal this year (30% completed a domestic deal in 2012)
– Aside from North America, US CEOs’ target regions for M&A/joint venture/strategic alliances include Western Europe (43%), Latin America (28%), and East Asia (26%)
– Divestitures are a critical piece of the US deals market, representing around a third of deal volume in 2012 – and PwC expects them to retain a prominent strategic position in 2013 for US CEOs
– Joint ventures and alliances are also on US CEOs’ agenda with nearly 60% planning a new alliance/JV in 2013
– Some industry specific shifts may drive activity including healthcare reforms that are likely to spur consolidation, and financial services companies pursuing divestitures to bolster capital levels and unlock asset values. The technology and oil & gas sectors also present opportunities for M&A activity in 2013