Investors will be hoping for an uplift in mergers and acquisitions (M&A) activity this year, with a study highlighting the value added to companies by deals.
In 2016, buyers outperformed the average company by 5.4 per cent, according to a Willis Towers Watson (WTW) and Cass Business School study.
The outperformance was even more pronounced – 10.1 per cent – in 2015, a record year for M&A activity. So investors will be hoping to a return to these heights.
Insurance company WTW has also shared its M&A predictions for 2017. Jana Mercereau, head of corporate M&A in the UK, is expecting:
Lots of local deals: due to global political uncertainty. US companies, in particular, are expected to invest at home following Donald Trump’s presidential victory.
Bigger, but fewer, mega-deals:
The business press has long focussed on ‘mega deals” over $10bn; 2017 may be the year when a $10bn deal is no longer noteworthy and we see a new class of “colossus” deals worth over $100bn.
Extracting more value from M&A: “Due to increased scrutiny from shareholders, business leaders will invest more effort in creating greater value from past deal activity.”
Following populist political movements and the growing social unrest developing in countries; companies expanding overseas in 2017 will be held more accountable for their promised contribution to local economies, including job creation, fair employment and human rights.