M&A: Ready For Liftoff?
Source: Boston Consulting Group
The ongoing uncertainties about the economic outlook and sustainable levels of profitability are likely to lead to smaller, lower-risk consolidation deals than before and might deter some companies from entering the M&A market. While the reluctance of more cautious companies to do a deal will prevent the upswing in M&A activity from reaching its full potential, it will also create significant opportunities for companies that are willing and able to make an acquisition before the competition intensifies and prices for targets rise. Conversely, companies that sit on the sidelines risk being left behind if economic confidence rebounds and M&A lifts off in a major way.