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Dykema Unveils Results From 8th Annual M&A Outlook Survey

Industry Leaders “Cautiously Optimistic” About Dealmaking Environment in 2013

December 6, 2012

Dykema has released the results of its 2012 Mergers & Acquisitions Outlook Survey, the firm’s eighth annual survey of leading company executives and outside advisors in the M&A space. This year’s survey measured the attitudes and perspectives of 242 respondents, who offered their perspectives on how the U.S. economy, financing challenges, the U.S. political environment and other domestic and global matters will impact the M&A market in the coming year.

Key findings from this year’s survey:

  • Respondents are marginally more likely to express confidence that M&A activity would be strong (28 percent) or neutral (58 percent) compared to sentiments last year.

  • Respondents were almost equally divided on whether the U.S. economy will improve or potentially worsen in 2013. Those who predict the economy will continue to struggle cite the continuing financial crisis in Europe, possible sequestration leading to austerity measures here and the aftereffects of the recent presidential election.

  • Among the seeds of optimism: capital is plentiful, with many buyers suggesting they’re keeping their “powder dry,” waiting for the right targets; strategic buyers are likely to continue driving the U.S. M&A market, with financial and foreign buyers increasing their influence in the coming year; and, the volume of distressed deals is likely to be lower than year-ago levels.

Dave Cellitti, who leads Dykema’s M&A practice, observes: “Our country still faces economic challenges, as well as significant regulatory changes on the horizon, and it should not come as a surprise that the respondents are divided in their outlook on the economy.”

To read the complete summary of Dykema’s 2012 Mergers & Acquisitions Outlook Survey, please click here