More than three quarters of investment management executives are planning to boost mergers and acquisitions (M&A) activity in 2016 to grow their customer base and expand geographic reach, according to KPMG annual M&A survey.
The report tilled ‘U.S. Executives on M&A: Full Speed Ahead in 2016’ found that 79% of investment management executives intend to make at least one acquisition in 2016, up from 63% compared to 2015 KPMG survey.
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The survey also includes other key M&A drivers such as intellectual property and acquiring new technologies.
Conducted in partnership with Fortune Knowledge Group, the survey included a total of 553 corporate leaders and M&A professionals (including 47 representing the Investment Management sector), in October 2015.
According to the survey, 77% of the executives intend to invest in the United States, up from 67% in 2015, while a third of the respondents (32%) are looking to invest in Western Europe.
The survey also found that 15% of the executives are seeking to invest in Asia (excluding China and India) and North America (excluding the US).
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By GlobalDataSurvey results show that the financial services sector will face a number of challenges in deal making in 2016 including valuation disparities between buyers and sellers, uncertainty in the regulatory environment and increased government oversight, and the challenge of identifying suitable targets.
The study also revealed 66% of the executives identified strategic fit as important factor in evaluating an acquisition target, while another 66% pointed to potential growth and 38% of them pointed to valuation and investment return.
