IMAP has released its highly anticipated IMAP Trends in Global M&A 2018-2019 Survey. The report is based on the results of a survey undertaken at the end of 2018, whereby IMAP partners across the world were asked for their views on the M&A markets in 2018, as well as their expectations for 2019.
The Survey reports that globally, IMAP’s advisors found 2018 to be a better year for M&A than 2017, with a stronger M&A market, increase in deal flow and more active buyers and sellers in the market. Multiples were also higher, with the Technology and Healthcare sectors listed as the top performers. Competitive pressures, opportunistic responses to offers from strategic buyers, along with an unwillingness to wait for the next economic upturn were listed amongst the motives for company sales in 2018. In turn, acquisitions were driven by the need to execute growth strategies via acquisition rather than organically, as well as a strong appetite for PE. Indeed a quarter of IMAP’s 2018 transactions involved a PE firm.
In terms of predictions for 2019, indicators are that for the first half of 2019 global GDP growth will continue to decelerate and liquidity will shrink, hampering financing for leveraged transactions. However, IMAP advisors for the most, remain optimistic, with many expecting an increase in deal volume growth in the coming year. The pace of acquisitions of technology related targets or assets by companies in non-tech sectors is expected to pick up and succession looks set to be another key factor driving M&A.
IMAP Chairman, Jurgis Oniunas, commented: “One of the many advantages of being a global M&A organization is that IMAP has a broad perspective on the global macro environment and can tap into the nuances of regional market sentiment. We aim to provide our clients with real insights that cannot be inferred by simply studying transaction data and hope the survey proves useful when evaluating M&A opportunities in 2019.”
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