The economic fundamentals that drive M&A are back at
pre-crisis levels, states a new survey published by KPMG. The number of
acquisitions that companies will undertake is expected to increase
in 2015: 82% of respondents plan at least one acquisition and 10%
anticipate 11 or more acquisitions next year.
Indeed, the survey suggests M&A is an attractive growth
strategy for the upcoming year since financing conditions are
favourable and organic growth prospects appear to be limited.
Fundamental M&A drivers such as healthy credit markets, large
cash reserves and steady job growth rates are aligning and ready to
light up deal activity in 2015.
As we discussed in a
previous blog post, growth by way of acquisitions is
increasingly being viewed by potential acquirers as a vehicle
enabling them to expand into new geographical markets or enter into
new lines of business. What's more, companies looking for exit
strategies generally prefer selling to a strategic buyer
