U.S. Executives on M&A: Full Speed Ahead in 2016

2016 M&A Outlook Survey

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U.S. Executives on M&A: Full Speed Ahead in 2016

In pursuit of growth, executives are turning increasingly to mergers & acquisitions. In fact, 91 percent intend to initiate at least one acquisition in 2016, up significantly from 63 percent in 2014, according to KPMG’s 2016 M&A Outlook Survey.

The study was conducted by KPMG in partnership with FORTUNE Knowledge Group and surveyed over 550 corporate and private equity leaders, M&A professionals, investors, and advisors to get a forward-looking view of the deal landscape. The report provides insight into the main factors driving M&A deal makers at a critical moment in the global economic environment.

Highlights from this new publication include:

  • 91 percent intend to initiate at least one acquisition in 2016, up significantly from 63 percent in 2014.
  • Companies are shifting their M&A strategies from consolidation in 2015 to expansion in 2016.
  • Executives expect the number of M&A deals to accelerate and the average deal size to increase in 2016.
  • Primary motivators for initiating deals in 2016 are entering new lines of business (37 percent) and expanding their customer base (37 percent) and geographic reach (36 percent).
  • Tech, pharma and biotech sectors are expected to drive deal activity, respondents anticipate the heaviest deal activity to take place in the technology sector (70 percent), up significantly from 47 percent in 2015.
  • U.S. remains the most attractive destination for M&A activity with 79 percent of executives planning to invest in the region in 2016, up from 56 percent in 2014.
  • Private equity firms are notably more concerned about interest rate increases (39 percent) than strategic buyers.

For more information, download the full report below.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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