December 5, 2017
M&A Outlook: Things are Looking Up for 2018
According to Dykema’s “13th Annual M&A Outlook Survey,” dealmakers are more optimistic about the prospects for M&A activity in 2018 than they were last year. The survey found that 39% of respondents M&A market to strengthen over the next 12 months – that’s up from 33% in 2016.
Other highlights include:
– Half of respondents said President Trump will have a positive impact on the U.S. economy and M&A market in 2018.
– 70% predict the volume of small deals (under $50 million) will increase over the next 12 months, with 53% predicting an uptick in deals valued between $50 million and $100 million.
– 68% said they would be involved in an acquisition in the next 12 months – approximately the same as last year.
– For the fourth year in a row, tech & healthcare are expected to see the most M&A activity in the next year. 59% of respondents also predict more M&A activity involving fintech startups & established financial services companies.
– Nearly 80% of respondents expect an increase in M&A activity involving privately owned businesses in the next 12 months. That’s a 10% increase over last year’s results.
The survey also says that more companies in Asia are expected to pursue deals in the U.S. next year. Interestingly, despite public statements from the Trump administration calling for the renegotiation of NAFTA, outbound M&A activity from the U.S. to Mexico and Canada is expected to increase in the next year.
– John Jenkins