AIM-traded companies are confident about the potential for closing M&A deals over the following 12 months, according to the 2009 AIM M&A Survey by stockbroker Daniel Stewart & Company.
AIM-traded companies are confident about the potential for closing M&A deals over the following 12 months, according to the 2009 AIM M&A Survey by stockbroker Daniel Stewart & Company.
The survey of 98 board level executives of AIM companies revealed that almost two-thirds would be heading for the negotiation table in the upcoming year. The respondents, for the most part FDs and CEOs, cited falling valuations as a key driver of opportunistic M&A. In addition, AIM executives said they felt under pressure to deliver growth in deteriorating economic conditions and M&A was perceived as a “quick fix”.
Almost a third of the AIM respondents revealed that they had not completed a deal since flotation despite shares being commonly used as acquisition currency and cited as one of the main reasons for seeking a stock market quotation. In contrast 15.5 per cent had become serial acquirers, completing six to ten deals since IPO.
On making deals successful, almost half of the AIM executives attached “high importance” to acquiring complementary M&A targets, whilst integration and due diligence were cited as other determining factors.
