Highlights in the publication:

• The number of deals was higher in 2012 than in 2011. M&A activity in 2013 is expected to be in line with 2012.
• The average deal size remains limited in 2012 and 2013.
• Sector diversification is still on the agenda of larger construction companies that are in a position to anticipate developments in the construction markets.
• Sector diversification seems more profitable than cross-border M&A strategies.
• It seems that companies with a strong focus on internationalisation have lower profit margins: cross-border strategies involve high entry and start-up costs which affect profitability of non-domestic acquisitions.
• Alongside diversifying strategies, we see a new item on the agenda: refocusing on core business and divestment of assets that do not fit into the new strategy.
• DBFM(O) contracts are becoming more interesting to construction companies, despite slightly narrowing profit margins due to tougher competition.
• Although the number of insolvencies in the European construction sector seems to have stabilised (>1% of the construction companies per year), both smaller and larger construction companies are still filing for insolvency.
• Lenders seem to take, to a certain extent, a more lenient stance when debtors are defaulting on their obligations.
• More private equity involvement, both in financing business and acquiring assets of construction companies