News

IMAP’S GLOBAL TRANSACTION AND PRICING SURVEY RECAPS 2011 M&A ACTIVITY AND PROVIDES OUTLOOK FOR 2012

2012 July 13

23 percent increase in total transaction value
33 percent of IMAP’s transactions were cross-border deals


ISTANBUL – July 12, 2012 – IMAP, a provider of premium M&A services worldwide, is pleased to announce the results of its 2011 Transaction & Pricing Survey, which includes M&A transaction data from its more than 400 advisers in over 40 countries. 


According to the IMAP Transaction & Pricing Report, in 2011, IMAP completed 227 transactions with a total value of US $11.3 billion. This represents a 23 percent increase from 2010’s 184 total completed transactions, making it the highest increase seen in the number of closed deals since IMAP began collecting data 17 years ago. In addition, 33 percent of IMAP’s 2011 transactions were cross-border deals.


“2011 proved to be a step toward stabilization for global M&A transactions, with larger deal sizes as evidenced by the 225 of the 227 IMAP transactions valued up to US $500 million.  We see this as a positive indicator that investor confidence is regaining strength,” said Sevket Basev, Chairman and CEO of IMAP.  “Our experience in 2011 makes us optimistic regarding both the number of buyers and sellers in 2012, which supports the overall outlook for M&A in the coming year. IMAP firms will be working with both sides to offer the most profitable deals for our clients while providing high-quality and enhanced network connections around the globe.”


Among other indicators, IMAP’s valuation multiples remained stable in 2011 compared to 2010, and reached 7.7x EBITDA (earnings before interest, taxes, depreciation, and amortization) by the end of the year.  


Other notable results from 2011 included:

  • In 2011, IMAP’s transaction numbers increased in every region where it operates, with 138 of IMAP’s deals closed in the EMEA (Europe, the Middle East and Africa) region.  There were also 50 deals closed in the U.S. and Canada, and 18 in Latin America.  
  • By sector, industrials accounted for 18 percent of IMAP’s closed transactions, following by high technology with 13 percent, and consumer products and services with 12 percent.
  • IMAP’s average transaction value in 2011, of US$49.7 million, marks a return to the 2008 pre-crisis levels.  
  • Energy and power had one of the highest average multiples at 9.2x EBITDA, followed by healthcare at 8.4x EBITDA, telecommunications at 7.6x EBITDA, and high technology at 6.8x EBITDA.
  • In one-fifth of the deals closed by IMAP in 2011, the buyer was a private equity group.
  • IMAP advisers report that the time it took to close transactions in 2011 remained consistent with 2010:  32.3 weeks in 2011 versus 33 weeks in 2010 — a difference of less than a week.


Key predictions for 2012 from IMAP advisers include:  

  • Greater activity is also expected in the energy sector.
  • Prices will remain at levels similar to 2011.
  • Growth strategy through reasonable acquisition proposals will be the primary driver of acquisitions.
  • International expansion and horizontal consolidation among competitors will be the dominant deal types in 2012.
  • Healthcare, energy and power, and industrials are expected to have the highest increase in M&A activity.  
  • Bank financing will remain at its present level of access in 2012.


To view or download the complete IMAP Global Transaction & Pricing Survey, please click this link.

 

About IMAP

IMAP is an exclusive global M&A partnership formed in 1973 and located in more than 40 countries throughout North and South America, Eastern and Western Europe, the Middle East and Asia. In 2011, IMAP ranked third worldwide and in Europe in the Thomson Reuters League Tables for the number of deals with a value of up to US$500 million. IMAP completed 227 M&A deals and 38 capital-raising mandates in 2011. IMAP advisers provide strategic merger, acquisition, divestiture and related corporate finance services with essential local market knowledge, and industry expertise delivered with unparalleled global reach.



# # #

To obtain a copy of IMAP’s 2011 Global Transaction & Pricing Survey, or if you are interested in receiving expert commentary from a member of IMAP’s global network of advisors, please contact the following:  

Media Contacts:  
Burak Ali Gül, (+90-530)280-8803, burak.gul@imap.com
David Gutierrez, (312)780-7204, david.gutierrez@imap.com