Article
Past As Prologue
What past M&A trends can tell us about the future
M&A activity of strategic buyers follows a cyclical pattern over time and this report posits that the market could face the next short-term downward cycle as soon as 2018. We detail the specific headwinds and tailwinds expected to shape the next cycle and offer a viewpoint on strategies and lessons to apply from prior downturns in M&A.
Over the past 25 years, we have observed a trend of cyclical M&A activity for strategic buyers, with the average cycle lasting 9 to 10 years. Analyses detailed within this report indicate a short-term downturn could arrive as soon as 2018, and thus now is the right time for companies to reassess their M&A strategies so they may successfully navigate the disruptive events driving the downturn. We believe the specific forces and lessons learned identified in this paper will help illuminate pockets of opportunity in an otherwise challenging environment and enable organizations to continue using M&A as a tool for growth.
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