It is still the season for prediction by industry insiders. This week, we learn that Asia Pacific is expected to remain strong in M&A, but European-initiated deal volume won’t be. These are just two ideas developed in a good article from Towers Watson.
Key points in the top five predictions
- The Asian market will continue to grow, led by Chinese and Japanese firms.
- Chinese firms to acquire in Europe in a big way. Expect some big-name companies to be targeted by cash-rich Chinese organisations.
- European deal volumes to remain subdued. The year 2012 was bad for European acquirers and 2013 volumes are unlikely to show much improvement.
- Surge in late 2012 is not a trend that will continue. Despite the large number of transactions completing in the final few weeks of the year, this is more likely to be a rush to the finish line for existing deals rather than signaling an upward trend.
- North American stability to continue. Not much change expected in M&A in North America during the first half of 2013, but there may a surge in activity if the economic conditions continue to improve and confidence grows.