Insights on Corporate Asset Sales for the Year Ahead
Contributed by Mergermarket, a Partner of M&A Leadership Council
Amid a record-breaking year for deals in 2015, the value of corporate spinoffs, carve outs, and divestitures rose as well, to US$523.6bn, representing a 30% year-over-year increase. According to this month’s Venue® Market Spotlight, survey respondents universally think corporate asset sales will either remain the same (20%) or increase (80%) in the next 12 months.
The biggest drivers of asset sales are expected to be improving operational efficiency (56% of respondents), focusing on core competencies (40%), and paying down debt (36%). By far the most-cited risk associated with selling assets is low asset valuations (72%).
RR Donnelley commissioned Mergermarket to interview professionals based in the US, Europe and Asia-Pacific to gain insight on their opinions regarding corporate asset sales for the year ahead.
Read the entire report HERE