BRENTWOOD, TENN., Dec. 19, 2019 (GLOBE NEWSWIRE) -- DirectorCorps, an information resource for directors and officers of companies nationwide, today released its 2019 Corporate M&A Survey, sponsored by Crowe LLP. Findings released state opportunities are bountiful if your company is looking to grow through acquisition.
“The majority of respondents believe they’ll make an acquisition in 2020,” says Emily McCormick, vice president of research at DirectorCorps. “However, pricing is a major obstacle to getting deals done.”
Almost two-thirds of the directors and executives responding to the survey believe there are plenty of attractive targets to expand or complement their company’s business. Overall, almost half are open to acquisitions but prefer to focus on organic growth; 43% aspire to be active acquirers.
“Although M&A activity is healthy and competitive, it is challenging to find a high-quality asset at a reasonable value,” said Archie Leynes, advisory services partner at Crowe. “Therefore, investors must maintain a disciplined investment approach; otherwise, investors risk overpaying or acquiring a low-quality asset that does not add value to the existing business.”
Key findings from the survey include:
Deal Valuation
Respondents are split on deal valuation: Almost half believe deal pricing is too high for their industry, while 43% believe it’s fair and responsible.
Boardroom Discussions
When boards analyze M&A, three-quarters say deal valuation is discussed. Directors also frequently discuss potential targets (71%), expansion in new markets (68%), and the size of the deals their company can afford (61%).
Economic Expectations
Regarding the impact of President Trump’s administration on their industry, 20% hold a mostly positive view. Most respondents express a favorable outlook for the U.S. economy and predict modest (58%) or even significant (1%) growth. However, 20% believe the U.S. will experience a downturn or recession in 2020.
The survey, which was conducted in August, September and October 2019, includes the views of more than 85 independent directors, chief executive officers and other senior executives of U.S. public companies representing a broad array of industries, particularly from the healthcare, technology and banking sectors. Full survey results are now available online at DirectorCorps.com.
About DirectorCorps
DirectorCorps operates as part of a privately-held media company headquartered in Nashville, Tennessee, with a presence in Washington, D.C. The company delivers information to a hugely influential audience of corporate executives and boards through annual conferences, exclusive networking events, digital services, editorial products and research reports. For more information, please visit DirectorCorps.com.
About Crowe LLP
Crowe LLP (www.crowe.com) is a public accounting, consulting and technology firm with offices around the world. Crowe uses its deep industry expertise to provide audit services to public and private entities. The firm and its subsidiaries also help clients make smart decisions that lead to lasting value with its tax, advisory, risk and performance services. Crowe is recognized by many organizations as one of the best places to work in the U.S. As an independent member of Crowe Global, one of the largest global accounting networks in the world, Crowe serves clients worldwide. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries around the world.
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For more information, please contact DirectorCorps’ Marketing Manager, Jackie DeFlorio at jdeflorio@directorcorps.com.