The state of the deal: M&A trends 2019

Our annual comprehensive look at M&A activity

Will M&A activity be on the rise once again this year? Our annual survey takes a closer look at deal trends and common challenges faced by corporations and private equity firms.

M&A trends 2019

Tax reform, a more relaxed US regulatory climate, and growing cash reserves fuel optimism among US dealmakers in our 2019 M&A trends report. And a recent uptick in merger and acquisition (M&A) activity shows no signs of slowing down. In this year’s survey, 79 percent of respondents expect the number of deals they close in the next 12 months to increase, up from 70 percent last year.

What else do companies predict for 2019? Deal making may look a bit different in the year ahead, with a heavier emphasis on more traditional customer base expansion and diversification of products and services rather than technology plays. An increasing number of organizations also appear to be looking to accelerate deal making to take advantage of current domestic policy.
While the M&A outlook is positive, a sizeable chunk of transactions still fall short of achieving the results initially envisioned. Corporations and private equity firms pin the most blame on external factors, but recognize the need for more effective due diligence and integration to make sure revenue projections materialize.

M&A Trends 2019

Key Insights

Corporate and private equity executives focused on mergers and
acquisitions (M&A) anticipate further acceleration of deal flow in
2019—both in the number of transactions and in their size—which
would further extend several years of record M&A activity.
In Deloitte’s sixth M&A trends report, we gleaned insight from 1,000
executives at corporations and private equity firms about deal
activity in the current year and their expectations for the next
12 months. Given current uncertainties facing dealmakers, the
somewhat surprising results point to sustained, strong deal activity,
and the numbers are striking: 76 percent of M&A executives at
US-headquartered corporations and 87 percent of M&A leaders
at domestic private equity firms expect the number of deals their
organizations will close over the next year to increase. On top of that,
there is strong sentiment that the size of those transactions will be
larger than the ones brokered in 2018—with seven in 10 respondents
saying they anticipate bigger deals.

More information

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