M&E firms expect M&A to continue over 2015

DetailsEditor | 29 May 2015

After the merger and acquisition (M&A) mania during 2014, media and entertainment firms will continue their buying spree but at a more stable rate says Ernst and Young (E&Y) research.

mandEeanYE&Y's survey found that fundamentally 2014 witnessed the strongest increase in M&A since the global financial crisis. Growing confidence in the global economy will further support M&A in 2015 even though the deal flow was stabilising compared with the previous year. It calculates that even though expectations have dropped from a high of 65% in April 2014, companies' appetite for M&A has risen to a four-year high. It found that half of M&E executives anticipate the M&A market will improve over the next 12 months, with a similar percentage expecting to pursue acquisitions. This, says E&Y, is being driven by M&E companies' longer-term growth strategies.

The acquisition surge, E&Y suggested, was being bolstered by the better quality of assets and an increase in the number of private companies that are attracted by relatively high valuations. However, it cautioned that the likelihood of actually closing deals remained somewhat subdued as more buyers entered the market and more companies adopt a disciplined approach to M&A.