viewpoint
I
f 2013 was the year the world learned to live
with the aftershock of the financial crash, then
2014 will be remembered for the return of
those other signs of normality in corporate life:
mergers, acquisitions, corporate restructuring
and contested takeovers. Expansionist executives,
who have long been instructed by nervous boards to
concentrate on getting their own business right, have
been suddenly given the green light to pursue aggressive
designs on others.
The signs of recovery mean that animal spirits are
back in fashion, as are bids and deals.
In terms of statistics the results are jaw-dropping.
The total worldwide value of takeovers in the first half
of this year was $1.8 trillion
1
– a full 73% higher than in
the same period of 2013. Not since the recovery from
the recession of the early 1990s has there been such a
spurt in a single year; not for a decade has so much been
spent on takeovers.
But the statistics for the volume of takeovers, rather
than the value, tell a different story.While the total
value of bids is almost as high as it has ever been, there
is nothing like the same increase in the number of deals.
What we have, in fact – and what you would expect in
takeovers
ByAnthony Hilton
greenlight
fortakeovers
As corporate life starts to return to normality after the
global financial crisis, companies are once again getting
the go-ahead to target mergers and acquisitions
THE INVESTOR
|
9
