Europe’s M&A recovery: a long-awaited chance for investors

European M&A activity has been lagging since the financial crisis began. But now, all conditions are met for buyers and sellers to engage in high-value spin-offs, restructurings or bids that even the prospect of weak economic growth will not deter.

Executive Summary

  • All conditions are met for a buoyant M&A cycle in Europe: a revival in investor confidence, low interest rates, big cash piles, low valuations and the strategic need for non-organic growth
  • The main factors that could delay the M&A recovery are European government austerity policies (with low economic growth and high taxes) and low valuations
  • With companies adapting to their new environment, the M&A deal structure will be modified with smaller deals, more spin-offs and fewer takeover bids
  • At such low valuations, M&A target companies have significant upside

Performance issue 13 – January 2014

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients. 

Performance issue 13
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