16pc of firms interested in acquisitions in 2011

1 Dec 2010

A survey that assesses corporate expectations of public takeover bids has found that one in six companies – including biotech, IT and support industries – intend to make at least one acquisition of more than €500m in the coming year; signalling that businesses are keen to expand in the market place.

The CEO/Senior Executive M&A Survey, which assessed corporate expectations of public takeover bids, from which around 780 companies responded, looked at the possibility that the market expansion might take place as companies signalled it was the right time for them to acquire their competitors.

Acquisitions expected

The survey found that one-third of companies expect acquisitions of European public companies during 2011, and within this consensus, almost half expect two or more bids in their sectors.

Around 20pc of companies believed that the coming six months would be the best time in which to pursue their next acquisition while 37pc of companies believe that a longer-term strategy is required.

Top-line growth

Companies revealed a lot of their focus was on “top-line growth” while more than half of them believed that investing in growth via mergers and acquisitions or capital expenditure was the best way in 2011.

Despite these encouraging figures, companies expressed a degree of caution and said that deals and acquisitions outside of their industries were unlikely, with the majority of them favouring consolidation deals.

Companies surveyed spanned a number of industries, including biotech, pharmaceuticals, software and IT services, support services, and telecoms, among others.