The Global M&A market continues to struggle to add value and buyer performance has been in steady decline since a 2015 peak, according to long-term data compiled by Willis Towers Watson and Cass Business School. After 2018 saw deal makers underperform in terms of shareholder value for an unprecedented fifth consecutive quarter, and record their worst annual performance for a decade, what can potential acquirers expect in 2019?
Jana Mercereau, Head of Corporate Mergers and Acquisitions for Great Britain, said: “The ability to deliver anticipated benefits in terms of shareholder value for the buyer is at a ten-year low. On top of this, the market stress that characterised 2018 will persist, with rising regulatory uncertainty, ongoing trade and tariff negotiations, including Brexit talks and the US-China trade disputes, making it ever more challenging to deliver deals successfully.
“Global M&A performance peaked in 2015 and has been on the slide ever since. However, with the strategic imperative for deals remaining strong, we think there’s a realistic chance that deal makers will do better next year as long as acquirers pick their targets carefully for growth.”