In 2015, it was a bumper year for mergers and acquisitions (M&A), especially in the mid-market space. With the volume of activity similar to previous years, the value of activity shot up in many of the world’s markets, with standout performance in the US.
Recent years have seen a significant amount of exit activity among private equity funds, with a large number of initial public offerings, especially in the first 3 quarters of the year, as funds successfully sold off portfolio investments to reap substantial returns. Strategic buyers returned to the market in force in 2014 and into 2015. Following the lengthy post-financial crisis downturn and ongoing uncertainty due to economic struggles on Europe, strategic buyers are getting back on their feet and their ability to price in synergies has made it harder for private equity funds to compete. The environment shows promise not seen since the pre-financial crisis markets of 2007, with private equity funds having lots of accumulated capital but difficulties in deploying it, as resurgent strategic buying keeps prices above the levels that institutional investors need for above-market returns.
Read more about the recently published 2016 Taxation of Cross-Border M&A publication in M&A Matters.
For further information please contact:
Arco Verhulst (KPMG in the Netherlands)
Devon M Bodoh (KPMG in the US)
Angus Wilson (KPMG in Australia)