An increasing number of privately held businesses (PHBs) around theworld are planning to grow through mergers and acquisitions, accordingto the Grant Thornton International Business Report released on Feb. 17.
The US business consultancy's global study atthe end of last year found the number of respondents expecting to makean acquisition in the next three years rising to 34 percent from 26percent last year.
However, in Vietnam , only 17percent of PHBs plan to grow through acquisitions in the next threeyears, down from 19 percent last year.
MatthewLourey, Advisory Services Director of Grant Thornton Vietnam ,explains the global trend: "At a time of improving economic andfinancing conditions, businesses are again looking towards acquisitionsas a means of growing revenues as they shift their mindset from survivalto strategic growth."
PHBs in the BRIC economies (Brazil , Russia , India and China ) are among those leading theway with 44 percent of respondents considering an acquisition, comparedto 27 percent in 2010.
Driven by the desire toaccess new markets and acquire new technology or established brands, 45percent of businesses in mainland China plan to grow throughacquisition, an increase of 19 percent over 2010.
Likewise, Indian companies are now back on the acquisition trail, with40 percent of them planning an acquisition in the next three years andexpecting their deals to be cross-border.
Anincrease in planned M&A activity is also seen in other majorregions. For example, in North America , 41 percent of PHBs areplanning acquisitions.
"After two slow years, withan improving economy and easing credit market, there is considerablepent-up demand for acquisitions," Ken Atkinson, managing partner ofGrant Thornton Vietnam , explained.
The GrantThornton International Business Report is a survey of medium to largeprivately held businesses that researched the opinions of more than5,700 businesses in the last quarter and 11,000 on an annual basis.
The respondents are chief executive officers, managing directors,chairpersons, or other senior executives in 39 economies, primarily infive areas: manufacturing (25 percent), services (25 percent), retail(15 percent) and construction (10 percent), with the remaining 25percent spread across all industries./.
The US business consultancy's global study atthe end of last year found the number of respondents expecting to makean acquisition in the next three years rising to 34 percent from 26percent last year.
However, in Vietnam , only 17percent of PHBs plan to grow through acquisitions in the next threeyears, down from 19 percent last year.
MatthewLourey, Advisory Services Director of Grant Thornton Vietnam ,explains the global trend: "At a time of improving economic andfinancing conditions, businesses are again looking towards acquisitionsas a means of growing revenues as they shift their mindset from survivalto strategic growth."
PHBs in the BRIC economies (Brazil , Russia , India and China ) are among those leading theway with 44 percent of respondents considering an acquisition, comparedto 27 percent in 2010.
Driven by the desire toaccess new markets and acquire new technology or established brands, 45percent of businesses in mainland China plan to grow throughacquisition, an increase of 19 percent over 2010.
Likewise, Indian companies are now back on the acquisition trail, with40 percent of them planning an acquisition in the next three years andexpecting their deals to be cross-border.
Anincrease in planned M&A activity is also seen in other majorregions. For example, in North America , 41 percent of PHBs areplanning acquisitions.
"After two slow years, withan improving economy and easing credit market, there is considerablepent-up demand for acquisitions," Ken Atkinson, managing partner ofGrant Thornton Vietnam , explained.
The GrantThornton International Business Report is a survey of medium to largeprivately held businesses that researched the opinions of more than5,700 businesses in the last quarter and 11,000 on an annual basis.
The respondents are chief executive officers, managing directors,chairpersons, or other senior executives in 39 economies, primarily infive areas: manufacturing (25 percent), services (25 percent), retail(15 percent) and construction (10 percent), with the remaining 25percent spread across all industries./.
