260 likes | 370 Views
and. welcome you to our webcast: M&A Market Review . Introduction. Moderator : Mary Kathleen Flynn senior editor The Deal LLC. Expert Panel. Mark Brady global head of M&A William Blair & Co. LLC. Expert Panel. Richard Lawson managing director Huntsman Gay Global Capital LLC.
E N D
and welcome you to our webcast: M&A Market Review
Introduction Moderator: Mary Kathleen Flynn senior editor The Deal LLC
Expert Panel Mark Brady global head of M&A William Blair & Co. LLC
Expert Panel Richard Lawson managing director Huntsman Gay Global Capital LLC
Expert Panel John Jones Jr. partner Pepper Hamilton LLP
Expert Panel Martyn Curragh U.S. transaction services leader PricewaterhouseCoopers
Favorable fundamentals led to strong M&A activity in first-half 2011, followed by decline in Q3 run rate • Relatively modest increase in deal volume • Significant increase in deal value
Megadeal activity fueled by corporate or strategic acquirers • Increase in deal size driven by PE buyers • Corporate divestitures continue to be key component of dealflow
Average deal value 369 340 301 242 229 233 $ Millions Source: Thomson Reuters/PricewaterhouseCoopers
Deal volume 12,069 11,368 10,072 8,098 8,684 8,739 Source: Thomson Reuters/PricewaterhouseCoopers
Pressures coming to bear on M&A • Continuing economic downturn • Private equity fundraising cycle • Supply vs. demand • Debt markets
Trends in M&A • Vendor due diligence (quality-of-earnings reports, environmental reports) • Third-party commercial due diligence
AUDIENCE POLL QUESTION How will M&A activity in 2012 compare to 2011? A) A slightly higher level of activity B) A slightly lower level of activity C) A large increase in activity D) A large decrease in activity E) The level will remain largely the same
Reasons many auctions are failing • Due to tightening of lending markets in second-half 2011, buyers are finding they can’t find financing • Some buyers are walking away because prices are too high, particularly in light of return objectives
More strategic deals vs. private equity • Well-capitalized companies secure financing • Significant cash reserves • Credit increasingly more available
Two major reasons for dramatic upward pricing trend • Excess of cash on balance sheets of strategics • Significant capital overhang—nearly half-a-trillion dollars
AUDIENCE POLLING QUESTION What sector will see the greatest level of activity in 2012? A) Healthcare B) Energy C) TechnologyD) Real estate E) Consumer and retail F) Industrials G) Other
Sector spotlight: Healthcare most-active sectors • Long-term care • Medical devices • Hospital and pharma • Physician practices
THE DEAL WEBCAST SERIESUpcoming Event Brought to you by The Deal LLC and Conway MacKenzie, this complimentary event, “Bankruptcy and Restructuring Outlook,”on Thursday,Nov. 3, at 2 p.m. ET looks at the biggest trends in the sector. The discussion will include experts Harvey Miller of Weil Gotshal, co-founder of Conway MacKenzie Don MacKenzie and Tiffany Kosch of HIG Capital.
and thank you for joining our webcast.