India

Eastern Europe (not including Russia)

Brazil

Middle East/Africa

Australia/New Zealand

South America (not including Brazil)

North America (not including USA)

Asia (not including China or India)

China

Western Europe

United States

10 20 30 40 50 60 70 80

© 2016 KPMG LLP, a Delaware l imited l iabi l i t y par tnership and the U.S . member �rm of the KPMG net work of independent member �rms a�l iated with KPMG I nternat ional Cooperat ive ( “KPMG I nternat ional ” ) , a Swiss ent i t y. Al l r ights reser ved.

In which regions/countries will your company/fund primarily invest in 2017?

U . S . a f a v o r e d i n v e s t m e n t w i t h W e s t e r n E u r o p e f o l l o w i n g i n 2 n d p l a c e . . .

In your opinion which of the following industries do you think will be the most active overall in 2017?

Te c h a n d O i l & G a s - h i g h e s t l e v e l s o f M & A . . .

45%

Technology

28%

Oil & Gas

22%

Pharmaceutical/ Biotechnology

12%

Healthcare

11%

Media/Telecomm

N o t a l l d e a l s m a d e i t t o c o m p l e t i o n . . .If your company/fund started an acquisition process, but did not complete a deal in the last18 months, what is the primary reason the deal failed?

* Due to multiple responses or rounding, not all responses add to 100%.

83% 84%2 0 1 6 w a s a n a c t i v e y e a r f o r M & A . . .

6%

FinancialServices

Approximately how many acquisitions will your company/fund have completed or plan to have completed?

0

6

12

18

24

1 2 3 4 5 6 7 8 9 10or more

0Number of acquisitions

Perc

enta

ge o

f res

pond

ents

25%

17%

14%

40%

“The fundamentals for a strong deal market cont inue to persevere, wi th corporates holding record amounts of cash and interest rates remaining histor ical ly low. The C-sui te recognizes that acquis i t ions can enhance their current business models and plat forms and reduce the t ime to market,” said Dan Tiemann, KPMG’s U.S. lead for Deal Advisory and Strategy.

Valuation issues

Loss due to a competitivebidding situation

Financial issues revealed duringdue diligence

Operational issues revealedduring due diligence

Management issues or lack of fit

Recent regulator changes

Changing industry specificconditions

Changing macro economicconditions

10 20 30 40

36

22

11

11

9

4

4

3

of those surveyed completedat least one acquisition in 2016, and 65% completed multiple acquisitions

expect initiate a deal in 2017 and almost 75% of thosesurveyed plan on doing multiple deals

Limited organic growth options

Need to address the transformationin the marketplace/existing businessmodelsAvailability of credit on favorableterms

Large cash reserves/commitments

Shifting consumer demands

Improving equity markets

Opportunities in emerging markets

2%

1%

1%

Which factor do you think will most strongly drive deal activity in 2017??

D e a l s w i l l b e m o t i v a t e d b y o r g a n i c g r o w t h . . .

Previous Data 2017

kpmg 2 0 1 7 - A S O L I D M & A Y E A R P R E D I C T E D