Acquisition

Research suggests that the M&A boom is likely to continue as the effects of globalization continue to solidify. Despite record-breaking levels of deal activity in 2006, one-third of European corporations and a slightly higher proportion of private equity firms expect their acquisition rates to increase further over the next two years.

Much of the recent consolidation has been driven by strategic buyers whose high levels of confidence and strong balance sheets continue to fuel M&A activity. Surveys suggest that there is a degree of pressure on these buyers to demonstrate an ability to grow, as well as to achieve a critical mass that will enable them to compete more effectively in their chosen markets.

As competition for deals intensifies, sellers appear to be looking more globally for future exit opportunities – particularly towards Eastern Europe and Asia.