Sector Spotlight: 2015 M&A Activity
Reprinted with permission from Acquisition International
Matthew Jackson, a partner in Barack Ferrazzano’s Corporate and Real Estate groups, provides his insight on what to expect regarding M&A activity in 2015.
During 2014, our firm experienced strong transactional activity in a variety of sectors, including energy, luxury goods, real estate and technology. As we move into 2015, we expect continued strength in M&A activity, both nationally and globally, due to both general economic and market-specific factors. Available historical and survey data and industry analysis also suggest we should expect increased M&A activity in 2015.
Throughout 2015, transactional activity in the U.S. and globally should continue to benefit from a generally positive transactional environment. Conditions supporting robust 2015 M&A activity in the U.S. include historically low interest rates, improved consumer confidence and spending, plump corporate balance sheets and increased strength in the U.S. dollar. In 2015, potential acquirers may have to overcome impediments such as potential increases in interest rates, increased competition for targets and increased multiples. However, we do not believe that these impediments will lead to a downturn in M&A activity in the near future. Rather, we expect deal volume and value, which increased in 2014 to levels not seen since before the 2007-2008 financial crisis, to further increase in 2015.
Matthew Jackson represents both domestic and international public and private companies in various industries, including energy, insurance, luxury goods, manufacturing, real estate investment trusts (REITs), transportation and technology. Barack Ferrazzano provides a wide range of business-oriented legal services to some of the most respected and well-known companies around the world. Our vision is to provide the highest quality of service with the cultural advantages and flexibility of a mid-sized law firm.
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