Still Derailed: No Relief for M&A Market As Deals Continue to Disappoint for Fourth Straight Quarter
The global M&A market underperformed for an unprecedented fourth consecutive quarter, according to the latest results from
"Confronted by looming trade wars, regulatory pressures and geopolitical events dominating the agenda in the US,
Based on share price performance, key findings revealed by the
* European acquirers managed to buck the negative worldwide trend by outperforming their regional index by 2.8pp. This is despite being brought down by
* In contrast to the poor record of
* Acquirers in
* Over a three-year rolling period, European acquirers are in the top spot due to their consistent outperformance in the last six quarters (6.6pp above their regional index), followed by
* The three-year rolling average performance is currently positive at 1.9pp and the performance since the start of the QDPM in 2008 is at 3.1pp,
Mercereau said: "Capital markets remain resilient, European players are performing well and the long-term data shows companies active in M&A consistently outperform those that stay away from deals. In the face of this optimism and appetite, M&A deals have visibly struggled for two years to add shareholder value. With challenges on the horizon, the question is, have dealmakers learned the lessons of the financial crisis a decade ago when over optimistic and unprepared dealmakers got their fingers burnt.
"Lacklustre performance in 2018 has put deal makers under significant pressure to achieve blockbuster results in the final quarter. The trick, as always, is to do M&A right. Key to success is a rigorous and critical eye during due diligence, lock step with integration planning and a focus on people who will be instrumental to execution. These elements have always been central to the historical success of deal making as a growth strategy and are fundamental now if we are to see a rebound before the end of the year."
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