Corporate Development M&A Activity Update

Axial’s Corporate Development M&A Activity Report analyzes some of the most prevalent issues impacting strategic acquirers in the current M&A climate. To gauge the environment, we compiled information and insight from the Axial Network, a survey sent to over 4,000 corporate development professionals, and a series of interviews with leading corporate development professionals from across a variety of industry verticals.

Thanks to Michael Chang of Pulmuone Foods USA, Jen Neill of Alliance Bus Group, Stenning Schueppert of Total Safety, and Jim Young of Legrand North America for their commentary in the report.

A few highlights:

• It seems that the sluggish M&A activity from the past few years has experienced a marginal uptick. 72% of surveyed Corporate Development professionals would describe the current M&A environment as “moderate.”
• To evaluate deals in this still-difficult environment, deal professionals rely on a combination of financial and nonfinancial factors — most notably culture and fit.
• Looking to the future, 62% of those professionals believe that deal activity will increase. The increased activity could be a result of the gradual economic recovery, increasingly available debt facilities, and PE dry powder.
• 88% of corporate development professionals expect to make at least one acquisition in the next year.
• Although PE dry powder could help stimulate M&A activity, it could also mean serious competition for strategic buyers and corporate development offices. 88% of survey respondents believe dry powder will increase competition for strategics.