Despite signs of recovery, macroeconomic conditions remain bleak and firms continue to struggle with the effects of the downturn. Not surprisingly, M&A activity, which traditionally has gone hand in hand with GDP development, has collapsed.
There are no marks for guessing the main reasons: (1) Companies with plummeted stock valuations lack an important "acquisition currency". (2) External funding currently is difficult to obtain for many players. (3) M&A is often perceived as too risky in the face of the current ambiguous outlook. A.T. Kearney however believes that firms need to ask themselves whether it is reasonable to strike M&A off their list of topics to take into consideration in the coming months and years.
Now is the time to act in many industries where a window of opportunity enables attractive non-recurring investments which shortly ago were literally unimaginable. Just think of previous crises that reorganized market structures, altered the direction of industries, pushed innovations, and even established new market leaders. And indeed, M&A activity has not entirely subsided, with especially two kinds of deals being catalyzed by the current economic climate: Restructuring divestments as well as industry-shaping consolidations.
Therefore, M&A is not out of the game and firms need to continue to recognize mergers as a highly effective strategic tool.
In das Gespräch mit Experten aus Industrie und Wissenschaft fließen jüngste Erkenntnisse ein - ob beim Vortrag, in der Diskussion oder bei einer der A.T. Kearney-Veranstaltungen.
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