Acquirer companies outperform markets

Mergers and aquisitionAcquiring companies in mergers & acquisitions (M&A) deals are outperforming the market around the world, research shows.

In Asia-Pacific, companies completing deals have so far this year produced a financial performance of 23.1 percentage points above the regional index.

During the same period, acquirers in North America also outperformed by 6.2 percentage points, which is consistent with the corresponding period in 2013, while European acquirers outperformed their index by 3.1 percentage points.

Globally, acquirers outperformed the market index by 7.9 percentage points over the year to date, Towers Watson and Cass Business School research shows.

Steve Allan, an M&A practice leader at Towers Watson, says: “Again we are seeing acquiring companies consistently outperform the market, a trend that has continued every quarter for nearly two years. It is apparent that bolder companies, which are willing to take calculated risks in the M&A arena, are reaping the benefits by consistently performing better than their more conservative peers.”

The number of European M&A deals with a value of at least $100 million has rebounded in 2014 following the slump in deals that occurred towards the end of last year, according to Towers Watson’s Quarterly Deal Performance Monitor.

©2014 funds europe