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M&A: Looking for the right move

12/07/2018

Strong start of the year for M&A deals. History shows that M&A activity tends to accelerate at the end of the economic cycle. Societe Generale Equity strategists take a close look at recent global M&A trends and highlight which European sectors could be active in M&A in the coming years.

History tells us that M&A activity tends to accelerate at the end of the economic cycle, which is when we see the biggest deals. M&A activity has got off to a good start in 2018 (year to date volumes at $1.1tn worldwide), after slowing in 2016 and 2017 in volume terms, both globally and in Europe. Last year, the global average premium paid by companies fell to a 10 year low of 25%, and remains low year to date (26%). High valuations, high leverage, the age of the economic cycle, political uncertainties (trade tensions) and competition with share buybacks are among the reasons preventing companies from being more aggressive and thinking about the right move at the right price.

In an in-depth special report, Societe Generale Equity strategists take a close look at recent trends in the global M&A cycle and point out why the environment is still favorable for acquisitions. According to their top-down and bottom-up models and insights from Societe Generale equity analysts, they highlight key European sectors that could be active in M&A.

See below links for details on how to access M&A: Looking for the right move on SG Markets Research and Insights.

SG Cross-Asset Research is composed of more than 200 Analysts, Strategists, Economists and Quant, combining their expertise into ‘Research-based’ and innovative solutions suited to client’ needs: fundamental studies and expert views, investment ideas and long-term strategies, trade ideas and tactical baskets, thematic and systematic indices, quant solutions. On top of its established UK and Western European base, SG Cross-Asset Research benefits from a global coverage thanks to its presence in the US and in Asia (Hong Kong, Singapore, Tokyo and Bangalore) and Societe Generale local networks in Eastern Europe.


Disclaimer

This editorial contains financial analysis which reflects the opinion of the Cross-Asset Research department of Societe Generale at the date of its publication. It does not necessarily reflect the views of the other departments of Societe Generale nor the official opinion of Societe Generale. This interview is dedicated to institutional and professional investors and is not deemed to be seen and used by retail investors for investment purpose. The viewers shall consult their own financial advisers to make their own appraisal.