If you follow this blog regularly, you know that mergers and acquisitions have not been covered in a while-especially one from Texas. Even so, they may be more common over the next couple of months. This is because recent statistics suggest that they are on the rise. In national news, an article reports that executives are anticipating an increase in merger and acquisition activity over the next two years.
According to a survey, almost half of the respondents expect an increase in mergers and acquisitions. Additionally, the research demonstrates that corporate boards are playing a more significant role in the merger and acquisition process. Sources add that more than 40 percent of executives believe their boards of directors have become more involved in this activity over the past couple of years. Specifically, boards are asking for more time discussing and detailing these types of transactions.
The research also indicates that investors are expected to continue their role in the merger and acquisition process. Around 33 percent expect that activist-investor activity will expand over the next year. This will inevitably put more companies into the arena, causing more breakups or carve-outs.
Mergers and acquisitions can be difficult. Therefore, with the anticipation of so much activity, companies will have an uphill battle in front of them. Businesses considering major transactions should take the time to evaluate the various merging and acquiring options.
If your company is one of the many companies planning on making some major changes, you may consider speaking with a knowledgeable business law attorney. He or she can assist you with your large transaction process.
Source: The Wall Street Journal, "Executives see increase in upcoming mergers & acquisitions and strategic alliance activity: Deloitte survey," May 22, 2012