Mergers and acquisitions:looking beyond the global downturn
International Business Report 2009 - Mergers and acquisitions: looking beyond the global downturn
Today’s headlines may be dominated by the global economic downturn, but when privately held businesses (PHBs) are asked about their plans for the next three years, a more balanced picture emerges. The Grant Thornton International Business Report (IBR) has been researching the attitudes and opinions of PHBs for the last 17 years and recently surveyed over 7,200 senior executives across 36 economies about their appetite for acquisitions. While the current tightening of lending policy and uncertain economic outlook is clearly impacting transaction volumes at the moment, the results suggest that PHBs retain a surprisingly robust attitude to deals over the next three years.
Although the percentage of respondents planning an acquisition showed a slight reduction (37 per cent plan to acquire against 44 per cent last year) there has actually been an increase in the proportion planning to transact cross - border, suggesting that international mergers and acquisitions (M&As) remain on the agenda as a key strategic tool to drive growth.
We believe that arising from these turbulent times there will be attractive opportunities to undertake well thought-out and carefully executed M&A transactions, both domestically and overseas. Indeed, in today’s market, opportunities exist for cash rich or well capitalised businesses to achieve a step change in their business by acquiring struggling but fundamentally sound rivals. Increasingly, such transactions are expected to be cross-border providing genuine strategic upside for buyers.
And as PHBs expand, our own global organisation of over 90 member firms is there to offer specialist M&A services in every major trading centre in the world.
Mike Hughes
Global service line leader - mergers & acquisitions
Grant Thornton International