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Heads up for ECM, BPM & BPO software executives globally

M&A Activity in the ECM sector

It has been reported by a number of M&A research organisations that, in 2009, the transaction value of M&A deals globally, was down again, over the already reduced transaction values for 2008.
 
Zephr reported that the value of global M&A declined by 15 per cent to USD 3,621 billion in 2009 (FY 2008: USD 4,242 billion; FY 2007: USD 5,610 billion), global deal value rescinded at a faster rate than volume, which was down just 2 per cent at 64,981 deals from 66,472 in 2008. Private equity investment declined in every outlined region by both volume and value.
 
Asia Pacific was the only outlined region for which year-on-year growth in M&A value was recorded. Asia Pacific’s 14 per cent deal value increase to USD 924,642 million (FY 2008: USD 810,232 million) outstripped the year’s 7 per cent volume gain (FY 2009: 21,282 deals; FY 2008: 19,946 deals). Western Europe saw the largest annual decline in M&A value with a 25 per cent deterioration to USD 1,043 billion (FY 2008: USD 1,382 billion) against a 5 per cent decline in volume to 18,386 deals (FY 2008: 19,389 deals). The corresponding value decreases in North America and the Rest of the World were 19 per cent and 22 per cent, respectively.
North America accounted for the largest portion of total global M&A value - some USD 1,196 billion - and the majority of this value was recorded for target companies in the US. The USD 1,063 billion total M&A value recorded for the US was more than triple the USD 318,807 million total recorded for second-placed UK. The most important global sectors by value were banking and services, both for private equity and M&A deals.
 
However during the first quarter of 2010, the mergers and acquisitions scenario saw a significant, quarterly increase in outbound deal value, with a total M&A transaction value of $14 billion, making the quarter one of the best performing quarters in terms of value, according to a latest report by Mergermarket, an independent mergers and acquisitions (M&A) intelligence service. M&A activity, focussed purely in the ECM industry, across all technology sectors, is reportedly up by something approaching 300% for the first quarter of this year over performance for the same time last year. According to the results of a survey of investment bankers, compiled twice a year by the Association for Corporate Growth (ACG) and Thomson Reuters, 85 percent of dealmakers expect an increase in M&A activity over the next six months.
 
Document Boss has witnessed the biggest upsurge in M&A activity ever; this was first evident with a dramatic increase in M&A enquiries we started to receive back in October 2009 and has resulted in the signing of a high number of M&A assignments (buy and sell mandates) in Q1 with many more predicted throughout the rest of the year.  M&A activity is now at a higher level than at any time in our eleven year history.  This may, in part, be due to greater penetration and dominance in this sector by Document Boss but we feel also demonstrates a higher degree of M&A activity in the ECM sector.