Many companies considered mergers and acquisitions this year; some were successful and others were not. Regardless of how many actually go through, the increase in mergers and acquisitions will continue next year, according to the Global Capital Confident Barometer survey recently released.
They survey reported that almost 75 percent of executives in the survey said they will pursue mergers and acquisitions in 2016. A majority of those executives said they are interested in two or three deals in the next year, with half of executives saying they have three or more deals under consideration.
The survey’s findings shows that mergers and acquisitions will continue to increase over the next year, particularly in real estate, consumer products and automobile and transportation industries.
While every company’s reasons for considering these deals are unique, a consistent theme was found in the survey: companies want to increase inorganic growth in the event of any economic downturn that could harm their business’s success.
Before making a final decision, companies need to consider the benefits and risks of the merger or acquisition. Several factors should be considered, including cyber security issues that could potentially kill your deal.
The survey found that 96 percent of those responding said cyber security concerns have resulted in canceled deals in the past, highlighting the impact cyber security threats have on businesses throughout the world.
Businesses need to be proactive to protect their interests when considering these deals. Do you have a strategic plan for your merger or acquisition? An attorney can help you create a plan and address potential concerns before any deals are made or cancelled by the other party involved.