November 6, 2014
M&A Forecast: Ray of Light With Some Clouds
A look at Dykema’s “10th annual M&A Outlook Survey” shows that this year’s respondents remain cautiously optimistic about the economy and the M&A market, but they reveal interesting areas of growth and opportunity, such as:
– China’s drive to open itself up to foreign investment shows, with 45% of respondents expecting an increase in deals outbound from the U.S. to China (up from 22% last year).
– Privately-owned companies will be a core factor of future economic strength, with 82% of respondents expecting an increase in M&A.
– Cash, not economic growth, is the primary factor driving M&A activity—for the first time in two years—according to the survey.
And this survey include 10 years worth of observations, such as:
– In 2005: 51% of respondents had a positive/somewhat positive outlook about U.S. economy; 81% in 2014 saw the future of the M&A market with that same positivity.
– In 2014: 62% of respondents are positive about the U.S. economy; 59% feel the M&A market will be stronger next year.
– In 2005: Technology was the sector respondents felt would fuel the most M&A activity in the coming year.
– In 2014: Healthcare was overwhelmingly the sector respondents felt would fuel the most M&A activity next year.