Deloitte: North America Ranked as Top Market for M&A Activity

More than two-thirds of executives expect the U.S. economy to improve in second half of 2013

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Jul 10, 2013, 08:05 ET

NEW YORK, July 10, 2013 /PRNewswire/ -- Forty percent of business executives, whose organizations are contemplating merger and acquisition (M&A) transactions in 2013, expect the deals will occur in North America. According to a recent Deloitte online poll, more than one quarter of these deals (28 percent) will be under $1 billion.

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"It may seem to go against conventional wisdom that executives are focused on North American deals over growth markets like the BRIC countries," said David Williams, chief executive officer, Deloitte Financial Advisory Services LLP. "However, North America is attractive because of its low risk and a history of large capital investments in these markets."

Additionally, more than two-thirds of executives (67.1 percent) expect the U.S. economy to continue improving throughout the year, with 76 percent of respondents significantly optimistic, more optimistic or maintaining their existing level of optimism about the M&A market for the remainder of the year.

At the same time, respondents identify a number of global economic challenges as barriers to business deals, including U.S. fiscal policy (34.6 percent), problems in the Eurozone (32.2 percent), China's economy (13.4 percent) and remaining bad loans held by U.S. banks (8.4 percent).

"The U.S. economy has been surprisingly strong compared to other developed economies, including the Eurozone, Japan and the United Kingdom," said Dr. Ira Kalish, director of global economics, Deloitte Services LP. "Positive signs in the U.S. include accelerated job growth, gains in real income and the rebound in the housing market. These factors have contributed to confidence in the economy."

About the online poll
More than 1,800 professionals from industries including financial services; consumer and industrial products; and technology, media and telecommunications responded to polling questions during a May 2013 webcast, titled "Outlook for Transactions and Business Events: Cautious Optimism or Ongoing Uncertainty?"

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