2017 Merger & Acquisition Year In Review
Record-breaking numbers of Mergers and Acquisitions were reported in 2017. In addition, last year marked the third straight year with over 50,000 M&A transactions announced worldwide. Over 500,000 M&A deals were recorded in the last eleven years, more than in any such period in recent history. This trend is expected to continue in 2018, with possibly with even bigger results.
According to Deloitte & Touche’s annual “The State of the Deal” survey of over 1000 executives at corporations and private equity firms, the number one strategic driver spurring 2017’s M&A deals was acquiring technological assets. Other catalysts included expanding customer bases in existing markets, increasing product offerings and diversifying services. Only 12% of respondents reported that the majority of their deals generated less than expected return on investment. That is down from 54% in the spring 2016.
An acceleration of M&A activity is expected in 2018, both in the number of deals and the size of the transactions. The Deloitte survey found that 97% of respondents expected deal size to increase or remain the same. For the second straight year, respondents cited effective integration, accurate valuation, and economic certainty as the three most important factors for a deal’s success. Well-planned, carefully-executed integrations yield transaction success.
Summit Advisory’s trademarked, proven Strategic Transaction Process™ is designed to sell your business for the highest economic value. Our experienced team will guide you through all steps of the process including: Analysis and Valuation; Sales and Marketing; Negotiation and Deal Structure; and Coordinating Closing.