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Independent sector will dominate M&A, says survey

8 January 2010

A new report has claimed that independent firms will be most active in mergers and acquisitions (M&A) this year, particularly in the asset management industry.

The study from investment bank Jefferies indicated that 2010 will see a shift away from last year's "mega-deals" in the asset management sector, with the majority of transactions set to involve smaller companies.

According to the firm, only 61 independently-owned fund managers were involved in M&A deals in 2009 - the lowest level in a decade.

In addition, divestitures accounted for 60 per cent of all M&A activity in the asset management industry during the fourth quarter of the year.

Commenting on the outlook for 2010, Aaron Dorr of Jefferies said that "improving market conditions, asset flows and pricing" could encourage many independent firm owners to make deals.

He also claimed that the "urgency of capital raising and strategic realignment of financial institutions" should tail off in the latter half of the year.

A survey conducted by UBS and the Boston Consulting Group in December found that 19 per cent of European businesses were expecting to make a significant acquisition in 2010.

Categories: Commercial


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