After the recent economic downturn, many industries had to put their plans for growth on hold. Companies with expectations to branch out into new markets, absorb competition or join forces with like-minded firms may have opted to not push forward in the past few years, but more expansion deals are in motion in 2013.
When organizations prepare for a merger or acquisition, it is important they use business integration tools to quickly and efficiently share information and systems platforms with all the parties involved. Doing so can help prevent delays and other headaches.
A recent survey from KPMG predicts merger and acquisition activity will increase this year, with 76 percent of merger and acquisition professionals in the United States expecting at least one event in the next 12 months. With regard to what is driving the increase in activity, 60 percent cited larger cash revenues in 2013, 40 percent said favorable credit terms spurred the decision and 26 percent noted opportunities in emerging markets.
There are many reasons for companies to engage in a merger or acquisition. About 20 percent of respondents are expanding their geographic reach, 19 percent are looking to drive profits and 17 percent want to enter into a new line of business.
The industries most likely to embody large numbers of mergers and acquisitions included the technology sector, healthcare and pharmaceuticals and energy sector. About 73 percent of mergers and acquisitions will take place in North America, 28 percent in Western Europe and 27 percent in China. These areas will likely also experience an uptick in business integration tool adoption to accelerate the completion of the tasks and enhance efficiency.
Is your company preparing for a merger or acquisition? What will it do to ensure the transition is smooth?