Out IN Front:
The Insider’s Guide
to M&A Trends
How do you use data and analytics during the M&A process?
To reinforce an investment case
To improve price by maximizing parties involved in auction process.
To identify over- and under-performing businesses
To target specific organizations or sectors
At what stage of a deal is data and analytics most impactful?
Post-deal
Valuation
Deal identification/origination
All of the above
What is your primary goal in using data and analytics?
I don’t utilize market or analytical data
To determine value, synergies and risks
To identify internal operational and external market trends
To reduce the reliance of intuition to support a value hypothesis with fact-based insights
What trends are you seeing in the due diligence process?
No change to the due diligence process
Time frames have become increasingly compressed due to the amount of competition for deals
Need for more third-party specialists to help in thoroughly preforming due diligence
Technology tools like artificial intelligence (AI) are helping to offload some of the manual processes
Are there specific deal sizes that you are more likely to pursue over the next 6 – 12 months?
Micro (<$100M)
Which sectors will maintain high activity levels for remainder of 2018 and into 2019?
Technology
Consumer markets
Healthcare
Industrials
54%
44%
14%
17%
25%
19%
4%
55%
22%
44%
19%
33%
11%
34%
12%
55%
35%
56%
41%
39%
23%
11%
I don’t utilize specific data to drive dealmaking decisions
0%
0%
Due diligence
None of the above
0%
To reduce working capital and drive up short-term cash flow
6%
Large cap deals ($1-10B)
Small cap ($100M-$500M)
Mega cap deals ($10B+)
Middle market deals ($500M-$1B)
70%
32%
29%
37%
23%
27%
11%
Financial services
Energy
Media & Telecommunications
Chemicals and mining
What geopolitical factors do you see impacting cross-border M&A over the next 6 – 12 months?
CFIUS impact on Chinese investment in the U.S.
Tax on previously untaxed foreign earnings
Ongoing U.S. trade war
Immediate (100%) tangible asset expensing
Reduction in the corporate tax rate
42%
37%
29%
48%
20%
14%
14%
Limitations on interest deductions
Interest rate hikes