Mergers and acquisitions ‘are set to jump in 2011’

Posted 01/12/2010

Mergers and acquisitions activity could increase significantly next year following a lull during the global economic downturn.

This is according to UBS, which found that one in six firms in Europe expect to make a large-scale acquisition in 2011, with big companies twice as likely to do so.

Meanwhile, one in three respondents to the survey said they expect to undertake deal-based restructuring at some time in the next 12 months as confidence returns to the boardroom.

UBS spokesperson Dan Stillit said deals activity could jump by between 30 and 50 per cent, taking it back to levels last seen in 2004, despite a poor 2010.

“We are optimistic for deal activity in 2011, both for public offers and private deals,” he added.

In July this year, the BDO 2010 Mid-Market Corporate M&A survey found that nearly 80 per cent of companies are looking to make acquisitions over the next five years.