A Fried Frank study conducted and published in conjunction with Mergermarket
To gauge the expectations and opinions of M&A, private equity and corporate executives on the future movement and leading issues of global M&A, we present Market Makers, a study, conducted and published in conjunction with mergermarket, a leading M&A intelligence and research service. Market Makers is the result of 150 interviews conducted in January and February 2007 with prominent private equity professionals, M&A bankers, and corporate CEOs in both the US and Europe.
Some of our findings:
While the availability of cheap debt is regularly cited as a contributing factor in the ongoing private equity boom, only 3% of respondents consider this a 'principal driver' of mega-buyouts with mega-buyout activity expected to continue regardless of any turn in the credit cycle.
Respondents clearly favored secondary buyouts as the exit strategy of choice for today's LBO, contrasting with the popular notion that a strategic sale or IPO exit signals a 'successful' buyout.
Large cap strategic M&A will continue, according to 56% of respondents.
Shareholder activism is seen as a catalyst for M&A activity by nearly 50% of respondents.
Energy and Financial Services are expected to be the leading sectors for large transformation M&A in 2007 with Healthcare, Business Services, and Energy deemed to be most attractive sectors for LBOs
For more information or to speak with a Fried Frank partner on the study or findings, please contact a Fried Frank communications expert.