Why 2017 Was the Year of Global Transformational Deals


Synopsis

Mercer | https://www.mercer.us | Mercer Leadership Interviews Jeff Cox Global M&A Leader Multinational Client Group

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Mercer’s own Jeff Cox discusses the first quarter of 2017. According to Jeff, this is the year of Global Transformation Deals. Cross border purchases are occurring at unprecedented levels. Private equity is getting involved in cross border transactions as well. People, Jeff says, are the common denominator driving the value in these transactions.

Transcript: First of all, we just finished up and got the numbers at a macro level for what happened in Q1 of 2017. And we’ve seen significant changes because of the backlash. Chinese outbound transactions, so Chinese buyers buying in Europe and North America is down 90% year over year. It’s because of all the regulatory issues. This is the year of the transformation deals globally. Volume is down, value is way up. The average transaction is up 438 million dollars, year over year, in the first quarter. That’s because companies have excess cash on their balance sheets. We’re at unprecedented levels. Private equity is getting into the fray again as well, and they’re buying cross border. People issues are significant. We’ve also seen a trend first quarter of 2017 that more transactions are cross border. I think the statictics from market merger reported a couple of weeks ago were 45% of the transactions were cross border. The common denominator, whether it’s a domestic transaction or a cross border transaction, is that business leaders whether they sit in HR or they’re functional leader or they actually are running the business recognize the common denominator driving transaction value is people.


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