Jefferies: M&A Activity to Rebound
August 24, 2010
After slumping for the first half of 2010, M&A is set to rebound over the next 12 to 18 months, according to Jefferies. The securities firm said it expects independent sellers to be particularly active.
The firm said a growing backlog of deal activity will play out over the next year and a half, driven by independent sellers increasingly seeking liquidity and increasingly willing to sell to buyers.
Last year saw a record amount of assets under management involved in transactions despite a drop in the number of deals. The first six months of this year have seen $437 billion in total assets transacted, a 4% increase in the first half of 2010 relative to the first half of 2009, and 9% in terms of deal value.
Over the next 12 months, the firm expects overall deal volumes to increase as asset managers return to making deals and investors increase their allocations to global and international portfolios and traditional fixed income. Jefferies analysts also expect Asia and emerging market buyers will join with U.S. and U.K.-based asset mangers as predominant buyers of asset management businesses.
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