Mergers and Acquisitions - M&A

Global and regional trends in 2012
Year 2009 was the one with the smallest number of deals and value in last decade. Because of economic and financial crisis leaders of the companies choose to stay in observant position rather than proceed with the deal. Probably it is also because as Ieva Azanda says: “when minus gets summed with minus the result is negative”9 – it is hard to achieve good result in downturn phase of economic cycle. However after some time acquirers are shaking off fears of a “double-dip” recession and proceed with mergers and acquisitions of other companies. Situation was getting better in 2010 until European debt crisis rattled markets across the world again leading to a sharp drop-off in mergers and acquisitions activity in the year of 2011 and the slump has continued into 2012. And again global companies contemplating large M&A transactions, stay hesitant given the uncertainty outlook for the global economy, and the European economy in particular. However it is predictable that as confidence broadens, we should see M&A levels picking up. Latest news confirm those predictions to be right as M&A activity is increasing after slow start in the first months of 2012.

To conclude
Size and global reach can be advantageous, and strong managers can often squeeze greater efficiency even out of badly run rivals even in bad times. The thing is that success of mergers depends on how realistic the deal makers are and how well they can integrate two companies while maintaining day-to-day operations. 10 A merger or acquisition can create real potential for explosive growth and enhanced profitability if the transaction is done right. But process like this is always impossible to do hundred percent right.…