Every year has its own highs and lows; memorable moments and events that shape our future. This year is no different. 2011 was marked by market turmoil, natural disasters, Europe’s sovereign debt crisis, and yes, recovering economy and thriving industries.

As for the mergers and acquisitions (M&A) industry, I could say that it has been a swell year. Despite all the negativity that hounds the hearts and minds of some business executives, analysts and experts, companies continued to think about expansion through buying a business for sale.  

It doesn’t mean that deal making wasn’t affected by all of the above. According to Dealogic, value of corporate mergers and acquisitions announced last November totaled $2.4 trillion, up by 1.4% in November 2010. But unlike the previous months, corporate deal making has slowed down. Dealogic research reveals that from August through November, the value of deals announced worldwide has slipped nearly 22% from the same period in 2010, including a 14.3% decline in November. With this, 2011 deal value may end up lower than 2010.

But despite the possible scenario, German lending giant Deutsche Bank AG believes that 2012 will be a better year for M&A. In their latest report, entitled “Markets in 2012 – Foresight with Insight”, Deutsche Bank revealed that global M&A volumes in 13% higher globally than the previous year, with the Americas the leading region up 22% followed by Asia and Europe, Middle East and Africa (EMEA) up 11%.

“M&A is a priority for many corporates. M&A currently represents, we believe, the best opportunity for growth in a slow organic growth macroeconomic environment in the industrialized economies. Under this backdrop, we expect to see well capitalized (sic) companies engaging in all cash or mostly cash strategic acquisitions driven by an alltime (sic) high in the ‘M&A affordability index’, the report states.

2011 was part of the recent up-cycle in M&A activity. While there have been some bumps in the road as a result of the European sovereign debt crisis, under the assumption that the volatility subsides and stability returns, Deutsche Bank expects the M&A up-cycle to continue in 2012.

Like I’ve said before, I believe that as 2011 comes to a close, M&A activity will be higher than 2010. Next year will be no different. Businesses are picking up momentum and they will continue to have growth on their minds. Therefore, buying a business for sale will remain one of their top priorities.

Prioritize your company’s growth as well. Register at Corporations4Sale.com and find your next acquisition opportunity.

Sources:
http://dbforesightwithinsight.com/files/inc/1472286174.pdf
http://blogs.wsj.com/dealjournalaustralia/2011/12/06/amid-gloom-deutsche-sees-upside-for-ma/
http://blogs.wsj.com/deals/2011/12/06/ma-market-barely-above-water-for-2011/