2018-开启并购新时代：未来交易趋势（英文版）-6mb

Deloitte M&A Report Summary

Core Content

This report provides an overview of the global M&A landscape in 2018, highlighting trends, challenges, and opportunities across different regions and sectors. It outlines the evolving nature of M&A, driven by economic changes, technological disruption, and shifts in corporate strategy, with a particular focus on the impact of US tax reform and the role of private equity.

Main Points

Global M&A Trends

• Deal Volume and Value: In 2017, global M&A deal volumes increased by 4%, reaching 49,612 deals, while deal values slightly declined to $3.1 trillion. However, in the first four months of 2018, $1.7 trillion in deals were announced, indicating a potential new wave of mega-deals.
• Geographic Activity: The US, Asia-Pacific, and Europe were the most active regions in 2017, with the US leading in deal value and Asia-Pacific in deal multiples. Cross-border deals saw a 33% increase in the first quarter of 2018.
• Liquidity and Funding: Companies hold substantial cash reserves, with non-financial S&P Global 1200 firms holding over $3.9 trillion. Private equity (PE) firms have $1 trillion in unallocated capital, leading to increased deal activity and higher valuations.
• Economic Drivers: The end of low interest rates and quantitative easing (QE) is creating urgency for companies to act now. Inflationary pressures and geopolitical uncertainties (e.g., Brexit, trade tariffs) are influencing M&A strategies.

Divestments on the Rise

• Growth and Challenges: Divestments reached $472 billion in 2017, the highest since 2007. However, increased regulatory scrutiny and uncertainty are making divestments more complex.
• Activist Influence: Activist investors are playing a larger role in divestments, with over 37% of their campaigns targeting M&A or divestment. Shareholder pressure is a key driver for many companies.
• Regulatory Impact: Regulatory pressure is a significant cause of divestments, especially following large acquisitions. Companies must prepare for precise and efficient handovers, with transitional services agreements (TSAs) being critical for post-deal operations.

Private Equity's Role

• Growth and Strategy: The PE market saw a 28% increase in deal value in 2017, reaching $467 billion. PE firms are shifting focus from cost synergies to technology-driven transformation.
• Sector Activity: Technology, media, and telecoms (TMT) remained the top sector for PE investment in 2017, with $99 billion invested, followed by consumer business ($86 billion) and real estate ($73 billion).
• Global Deal Corridors: The US-Europe deal corridor remains strong, with increasing cross-border activity. Japan also saw significant growth due to corporate governance reforms and capital controls.

US Tax Reform Impact

• Corporate Tax Cuts: The US tax rate was reduced from 35% to 21%, significantly affecting M&A strategies. This change encourages repatriation of overseas earnings and makes asset sales more attractive.
• Tax Changes and Valuations: The new tax provisions may increase target valuations, as companies can now expense capital assets and benefit from lower capital gains taxes. However, interest deductibility limits may raise the cost of leveraged deals.
• Strategic Shifts: The tax reform has led to a shift in capital allocation, with companies potentially favoring domestic acquisitions over cross-border ones. PE firms and leveraged companies face new challenges in structuring deals.

Disruptive M&A

• Strategic Importance: Companies are increasingly using M&A to capture disruptive innovation, particularly in fintech, AI, robotics, and cybersecurity.
• Non-Tech Acquisitions: Nearly 60% of disruptive tech acquisitions in 2017 were made by non-tech firms, showing a trend of technology integration across sectors.
• Corporate Venturing: Corporate venture capital (CVC) investments rose from $40 billion in 2016 to $49 billion in 2017. CVC provides access to new technologies, business models, and talent, supporting innovation.

Key Sectors and Innovation Hotspots

• Innovation Hotspots: The US, Israel, UK, France, Germany, India, China, and Japan are the main innovation hubs, accounting for the majority of corporate investments in technology.
• IoT and Robotics: These sectors attracted significant M&A and CVC investments. IoT deals totaled $98 billion during 2015-17, while robotics saw $7 billion in M&A investments, with technology and industrials as primary acquirers.

Conclusion

The M&A landscape in 2018 is marked by increased deal activity, rising complexity, and a strong focus on innovation and efficiency. Companies must navigate regulatory, economic, and strategic challenges, with private equity and shareholder activism playing pivotal roles. The US tax reform is expected to influence deal structures and valuations, while technological disruption continues to drive M&A as a key tool for growth and transformation.