Axial’s Corporate Development M&A Activity Report analyzes some of the most prevalent issues impacting strategic acquirers in the current M&A climate. To gauge the environment, we compiled information and insight from the Axial Network, a survey sent to over 4,000 corporate development professionals, and a series of interviews with leading corporate development professionals from across a variety of industry verticals.
A few highlights:
- It seems that the sluggish M&A activity from the past few years has experienced a marginal uptick. 72% of surveyed Corporate Development professionals would describe the current M&A environment as “moderate.”
- To evaluate deals in this still-difficult environment, deal professionals rely on a combination of financial and nonfinancial factors — most notably culture and fit.
- Looking to the future, 62% of those professionals believe that deal activity will increase. The increased activity could be a result of the gradual economic recovery, increasingly available debt facilities, and PE dry powder.
- 88% of corporate development professionals expect to make at least one acquisition in the next year.
- Although PE dry powder could help stimulate M&A activity, it could also mean serious competition for strategic buyers and corporate development offices. 88% of survey respondents believe dry powder will increase competition for strategics.