Three years after the start of the financial crises, the third annual survey of the M&A plans of European companies, conducted by the Boston Consulting Group and USB Investment Bank, reveals a nuanced picture for mergers and acquisitions in 2011. Many of the findings indicate a positive outlook for corporate transactions over the [past 12 months, suggesting that next year should see a healthy level of M&A activity. Yet some survey results also show an element of cautiousness among executives with regard to the M&A outlook, which is likely to have an impact on deal-making in 2011.
On the positive side one in six companies is planning large-scale transaction in the next 12 months and among midsize and large companies, one in three have such plans. But last year’s expectations of a similar recovery in deal activity failed to materialize in 2010, amid fears of a double-dip recession and sovereign-debt crises. With lingering uncertainties over the M&A market; it is hardly surprising that optimism about the prospects for deal-making is tempered by caution.
So will M&A activity rebound to old heights, or is it entering a “new reality” – a low-growth, post crisis environment that will continue to dampen deal activity? This white paper tries to shed some light on this question, drawing on the 2011 plans of chief executive officers and senior managers from 179 of the largest publicly listed European companies. (Taken from introduction to report).
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Authors: André Kronimus, Alexander Roos