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Confidence in global M&A activity remains high

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More Deals to Use Mix of Cash and Stock
For the first time in five years, advisors in North America expect to see a decrease in the number of deals done with all cash (25%), driven by rising equity values.  More than half of respondents (58%) predict that deals will use a mix of cash and stock, although there is an expected uptick in the number using all stock (17%).  Almost two in three (63%) of advisors in Greater China believe they will see more deals using a mix of cash and stock, while 37% expect more deals using all cash.  Advisors in Europe expect to see a decrease in the number of deals being done with all cash (38%) and growth in deals using a mix of cash and stock (58%).

Outward Expansion to Drive M&A Growth in China
Greater China-based deal advisors believe the primary drivers of M&A activity in 2014 will be the growing appetite among privately-owned Chinese companies (53%) and Chinese State Owned Enterprises (50%) for foreign expansion.  Advisors believe Greater China acquirers will most likely invest in Europe (46%) or Africa (27%).  Political tension in the Asia region is not expected to have a significant impact on intra-Asian deal activity in 2014, with half (46%) of Greater China advisors predicting a minor reduction in deal activity and almost as many (43%) anticipating no impact at all.  

 

 

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