2014 was a strong year for mergers and acquisitions. 2015 figures to be even better, experts say, and the best year since the economy tanked in 2007. A recent KPMG LLP report that surveyed 738 M&A professionals nationwide found that 82% anticipate their U.S. companies or clients will embark on at least one acquisition this year, up from 63% who predicted similar activity at the start of 2014.
Of Greater Clevelanders in that group, 78% anticipate at least one deal this year. Respondents generally said they expect deal valuations to go up as well. A focus of those transactions increasingly will be in the expansive middle-market segment, with more deals sought between the $250 million to $1 billion range, according to KPMG. And 73% of all respondents said they expect the United States to be the most active M&A market across the globe. Read more in Crain’s Cleveland Business.
From an economic development perspective, M&As can be good and not so good. While in an overall sense M&As increase economic growth and profitability by adding productivity in industries, they can also pose threats to local areas where local operations and jobs are consolidation into external locations. They can also weaken companies ties to a local area where local businesses are acquired by external companies and investment groups.