BDO Horizons 2016 - Issue 4

BDO is thrilled to present the fourth edition of BDO Horizons in 2016. As we gather in Copenhagen for the annual BDO Corporate Finance conference in November, we ask our hosts to explain what makes this small part of the world so big in business. The result is our featured article: Scandinavia.

As we move into the last quarter of 2016, it is the perfect time to look ahead by first looking back. Is it still possible that 2016 M&A levels could yet surpass 2015 (the most active year since the financial crisis)? Events in the last months have affected certain regions, for example Britain has voted to leave the European Union, Brazil has staged the Olympic Games in Rio and in the US the election preparations are taking place. What's the impact on the M&A market of these events?

We focus on our customary selected sectors across 17 global regions, giving you a comprehensive, international overview of the M&A mid-market. We hope that BDO Horizons will provide some of the context necessary to understand the current M&A market and to help you make valuable decisions in what is a complex environment.

INSIGHTS FROM A LEADING M&A ADVISER

Many factors influence the level of M&A activity, but confidence is key. What we are seeing now is a fall in M&A activity, so perhaps that is indicative of weakness in the global economy. Nevertheless, once you are in the middle of a possible transaction it is not just about your confidence in the specific deal or the wider economy, you also have to have confidence in your team.

You need to feel they know your strategy and your objectives, that they are committed to you and not just to the project.

You need to be sure that they have a professional approach and understand the local success factors in the region/sector. Given the increasing importance of cross-border transactions, soft factors or ‘cultural aspects’ become more and more important. So it is worth working closely with M&A professionals who are on the ground, combining local expertise with global experience.