Global Scenario

Global Scenario

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Global Scenario

Trend of the M&A Activities

Attractive target valuations continue to be
the primary driver that will present M&A
opportunities
in
2011.
Domestic
competition is perceived as another
strong catalyst for M&A activity for the
upcoming year. Market volatility is seen
as the most significant obstacle to global
deal making in 2011, which is consistent
with last years results.
Global M&A activity witnessed a strong
come back with aggregate volume and
deal count figures surpassing 2009 levels.
Through the end of November 2010, over
21,000 deals were announced with more
than $1.9 trillion in total volume. This
represented a 12% increase from 2009
volume levels, and marked a sharp
reversal in the two-year decline of deal
making activity that began in 2008.

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Global Scenario

Primary drivers of M&A activity in 2011

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Global Scenario

The most significant obstacles to the global deal in 2011

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Global Scenario

Expected region from where the most active buyers to be based in 2011

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Global Scenario

Expected regions from where the most attractive acquisition targets to be based in 2011

Asia Pacific companies are expected to be the most

acquisitive buyers in 2011, while respondents
expect the most attractive targets to continue to be
found among firms based in the North American
region

Asia Pacific experienced a significant growth in

M&A activity, reporting over 8,700 deals that
involved an Asian company as the target, seller, or
buyer, eclipsing Europe as the second most active
region, following North America.

Fueling this growth is acquisition opportunities in

China, with approximately 2,500 deals worth
$110billion, a 29% increase in deal activity and
15% increase in volume from 2009, and a
staggering 108% increase in deal volume since
2005. Chinas appetite for buying opportunities is
also increasing, with $145 billion worth of deals
announced in 2010, a 453% increase from 2005
levels.

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Global Scenario

Industry sectors do you expect to contain the most M&A activity in 2011

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Global Scenario

Americas M&As

The Americas region announced over $1.1 trillion in transaction volume in 2010. This represented of
12% increase from 2009

The average deal size for transactions in the region for 2010 was $264 million

Deals in the region were dominated by exploration & production oil companies, with an aggregate
volume of $99.70 billion for targets and $74.85 billion for acquirers

The most prominent deal in this sector was the Petrobras purchase of offshore Brazilian oil properties
from the Federative Republic of Brazil for $42.5 billion

Between 2000 and 2010, the oil & gas industry dominated. Its resilience from the 2003 low
($26billion) is apparent with its total volume reaching $176 billion in 2010. The second best
performer is the telecommunications industry reporting $87 billion in 2010 M&A activity.
Commercial services fell in to third place with $47 billion worth of deals announced.

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Global Scenario

Americas M&As

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Global Scenario

EMEAs M&AS

EMEA region reported over $787 billion in transaction volume this year. This represented an 18%
increase from 2009, a total of $662 billion

The average deal size for transactions in the region for 2010 was $250 million

Financial companies and integrated electric companies were the most acquisitive companies, with
each totaling $61 billion and $55 billion respectively.

APAX Partners announced the most deals in 2010 (23); it partnered with Bridge point Capital Ltd to
acquire Histoire DOr from One NFLLLP for 600 million

2009s economic slump severely affected the M&A market. It totaled only $663 billion as compared
to over $2 trillion in 2007. The 2010 exit from the global recession positively affected the M&A
market. Deal volume increased 19.5%.

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Global Scenario

EMEAs M&AS

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APAC M&As

The developed and emerging economies of Asia Pacific engaged in over 8,700 deals worth more than
$594 billion. This is a 25% increase in volume compared to 2009, where there were 9,288 reported
deals worth $477 billion

The average deal size for transactions in the Asia Pacific for 2010 was $95 million

The financial industry experienced the highest M&A activity, with acquirer spaying over $150 billion
to acquire companies located in China, Australia, Japan, India, and the United States.

The largest deal in the region was Bharti Airtel's purchase of Zain Africa BV from Mobile
Telecommunications for $10.7 billion

The most acquisitive country was China, which announced over $144.52 billion of deals. Japan and
Australia followed, with $85 billion and $58 billion worth of transactions respectively

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Global Scenario

APAC M&As

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Global Scenario

M&As in INDIA

The first nine months of 2010-11 (April

December) have witnessed more than three-fold
increase in value terms in the Merger &
Acquisitions (M&A) growing from US$ 13.54
billion in the corresponding period to US$
58.73 billion

The study undertaken by the Associated

Chambers of Commerce and Industry of India
(ASSOCHAM) says the number of deals also
rose to 222 from 129 during the same period

The cross border Inbound, Outbound and

domestic M&A deals occupied a 16.63%,
41.96% and 41.41% share in total deals with
21, 98 and 103 number of deals respectively,
during the period April-December 2010.

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Global Scenario

M&As in INDIA

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Global Scenario

Global & Indian M&As

Global M&A activity witnessed a strong come back with aggregate volume and deal count figures
surpassing 2009 levels

Asia Pacific companies are expected to be the most acquisitive buyers in 2011, while respondents
expect the most attractive targets to continue to be found among firms based in the North American
region

2010 has been a record year for India M&A. As per market data, announced M&A volume has
surpassed the previous record of $68 billion achieved in 2007.

From an outbound M&A perspective, India continues to expect activity in natural resources (i.e. oil
& gas and metals & mining) and technology (IT services). For inbound M&A, we would probably
highlight healthcare, consumer and telecom

Large deals may continue to skew India M&A volumes but ultimately the bread and butter for
mature M&A markets is mid-market deals. We can expect continued momentum in mid-market
M&A in India. The interesting thing is, unlike in 2007, a $500-million deal is not as big today
because average deal sizes in India have increased.

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