In the first quarter of 2013, M&A activity in Asia/Pacific and United States/Canada increased by 15% and 2%, respectively.

The remarkable surge of activity in Asia/Pacific is proof that an increasing number of companies are using their large cash positions, along with access to cheap debt, to expand in this region. In the United States/Canada, M&A experienced modest growth as financial and strategic buyers still view it as an excellent place to make opportunistic acquisitions.

Financial buyers are continually looking for companies that are poised for growth. Similarly, strategic buyers are looking to deploy large cash balances in an effort to expand geographically, increase distribution, and enter new markets.

Given these factors, it is highly likely that M&A activity will experience significant growth in the next three quarters.

Global M&A activity in Q1 2013 is projected to be lower than Q1 2012. As you will note in the chart below, it is also expected to be lower than Q1 2011. Q1 2013 was impacted by several events including the overhang U.S. election, fiscal cliff, and the continued Eurozone crises.

We expect the pace of M&A transactions in general, and the middle market in particular, to increase dramatically over the next three quarters. Companies are continuing to make strategic and tactical acquisitions for numerous reasons including the simple fact that they can get a faster return with less risk via a successful acquisition than by making capital expenditures.

Over the past few years, the M&A landscape has changed quite dramatically from a geographic standpoint. As we’ve mentioned in the past, M&A activity in Europe has seen a quite precipitous decline, with associated increases in M&A activity in the United States / Canada and Asia / Pacific regions, and we fully expect this trend to continue in the near term.

The one region that has failed to receive much M&A attention is Africa / Middle East, which, in the chart above, follows nearly the same path as that of the Latin America and Caribbean region; however, it appears that there may be a sharp increase in M&A activity in Africa over the next three to five years.

Africa has a plethora of natural resources, such as oil and natural gas, iron ore, copper, etc. Many Chinese companies have already recognized the value and invested in these areas. As companies with large cash positions from other regions of the world start to deploy their capital to develop these natural resources, there will be a noticeable uptick in M&A activity in Africa.

2012 was a year of uncertainty. There were notable events, such as the U.S. Presidential election, fiscal cliff, and the status of Greece’s future in the European Union, that caused many companies to delay their execution of various growth strategies.

Despite these hesitations, on a global basis, the number of Middle Market M&A transactions increased by 4% from 2011 to 2012.

Looking forward, we expect that some companies will retain a conservative strategy due to the upcoming U.S. debt ceiling drama and the European socio-economic issues. However, shrewd companies will take advantage of the vast number of global growth opportunities and make strategic offensive and defensive acquisitions. As a result, we expect there will be a higher level M&A activity in 2013.

The year 2012 was a tumultuous time, filled with uncertainty and apprehension as the global community grappled with a series of significant events. From the highly anticipated U.S. Presidential election to the looming threats of the fiscal cliff and the precarious future of Greece within the European Union, these key moments left many businesses feeling cautious and hesitant about their growth strategies. As companies navigated through the turbulent economic landscape, many chose to delay their plans for expansion, opting instead to adopt a more conservative approach.

Looking ahead to the future, it is likely that some companies will continue to tread carefully, especially in light of the upcoming U.S. debt ceiling drama and the ongoing socio-economic challenges in Europe. However, for those with a keen eye for opportunity, there is a wealth of global growth possibilities waiting to be seized. By strategically pursuing both offensive and defensive acquisitions, these savvy businesses will be well-positioned to capitalize on the changing landscape and drive higher levels of M&A activity in 2013.

Versailles Group is a Boston-based investment bank that specializes in international mergers, acquisitions, and divestitures.  Versailles Group’s skill, flexibility, and experience have enabled it to successfully close M&A transactions for companies with revenues between US$2 million and US$250 million.  Versailles Group has closed transactions in all economic environments, literally around the world.

Versailles Group provides clients with both buy-side and sell-side M&A services, and has been completing cross-border transactions since its founding in 1987.  

More information on Versailles Group, Ltd. can be found at www.versaillesgroup.com.

As 2012 comes to a close, we’d like to wish you season’s greetings with our best wishes for a very happy holiday!

With less than a month left in 2012, this year was an exciting year for global M&A – all regions experienced at least a 3% increase in M&A activity, except for Europe, which saw a 9% decrease. The Asia/Pacific and Latin America/Caribbean regions experienced the largest increases, 5% and 11%, respectively. The surge in activity in these two regions was primarily due to cross-border M&A whereby companies in one region seized an opportunity in another region.

As we transition into 2013, there will be new opportunities worldwide. As a great man once said, “there are no problems, only opportunities.” Some of the questions facing the world are:

How will the political and economic turmoil in Europe be resolved?

How will the Democrats and Republicans resolve the “Fiscal Cliff” issue in the United States?

Will China continue growing at a rapid pace, or will it begin approaching the “hard landing” many predict will occur?

Will GDP growth in Brazil and the other Latin American countries accelerate in 2013?

In a constantly evolving global market, challenges will always arise. However, the key lies in seizing the opportunities that present themselves worldwide to strategically position your business for not just growth, but sustained profitability. By staying ahead of the curve and actively seeking out potential avenues for expansion and development, businesses can navigate through obstacles and emerge stronger than ever. It's not just about overcoming challenges, it's about leveraging them to propel your business towards success in an ever-changing landscape.

Versailles Group is a Boston-based investment bank that specializes in international mergers, acquisitions, and divestitures.  Versailles Group’s skill, flexibility, and experience have enabled it to successfully close M&A transactions for companies with revenues between US$2 million and US$250 million.  Versailles Group has closed transactions in all economic environments, literally around the world.

Versailles Group provides clients with both buy-side and sell-side M&A services, and has been completing cross-border transactions since its founding in 1987.  

More information on Versailles Group, Ltd. can be found at www.versaillesgroup.com.

Worldwide, middle market M&A transactions, those with transaction values less than US$1 billion, have been occurring at a rapid pace in the first month of Q4. Middle market M&A in the United States, in particular, is seeing tremendous activity whereas M&A in Europe is continuing to struggle.

In the US, at this pace, we expect over 4,000 transactions in Q4. This will represent an increase of over 11% as compared to the 3,604 transactions in Q4 of last year. This growth can be explained by a number of factors, but most importantly, corporations are using some of their large cash balances and the ability to issue low interest debt to pursue synergistic and other acquisitions.

Traditionally, companies use their excess cash for either capital expenditures or acquisitions. According to a recent study published by Goldman Sachs, capital expenditures are not increasing as companies are deploying their cash for acquisitions, which provide immediate access to growth and less risk. This is, perhaps, the largest single driver in the current middle market M&A boom in the US. Furthermore, low interest rates are enabling companies to issue debt quite cheaply thereby helping companies without enough cash to fund acquisitions.

In Europe, the M&A landscape is facing challenges due to various factors such as economic uncertainty, political instability, and regulatory changes. These uncertainties are causing hesitation among companies to engage in M&A activities, leading to a slower pace of transactions compared to the US market.

Despite the struggles in Europe, the Middle East and Asia are also experiencing an increase in middle market M&A transactions. The Middle East, in particular, is seeing a surge in activity driven by the region's efforts to diversify its economy and attract foreign investments. Asia, on the other hand, is benefiting from a strong economic growth trajectory and an increasing appetite for cross-border acquisitions.

Overall, the global middle market M&A landscape is dynamic and evolving, with different regions experiencing varying levels of activity. Companies are strategically leveraging their resources and taking advantage of favorable market conditions to pursue growth opportunities through M&A transactions.

Versailles Group is a Boston-based investment bank that specializes in international mergers, acquisitions, and divestitures.  Versailles Group’s skill, flexibility, and experience have enabled it to successfully close M&A transactions for companies with revenues between US$2 million and US$250 million.  Versailles Group has closed transactions in all economic environments, literally around the world.

Versailles Group provides clients with both buy-side and sell-side M&A services, and has been completing cross-border transactions since its founding in 1987.  

More information on Versailles Group, Ltd. can be found at www.versaillesgroup.com.

The most notable M&A news in Q3 was that there were more transactions in the United States/Canada region than there were in Europe. This is unusual, but we fully expect it to continue in the coming quarters as there seems to be limited progress in the resolution of the economic issues in Europe.

In Q3 the total number of M&A transactions in the United States/Canada increased by 137 to 4,372, which represented a 3% increase year-over-year. The Africa/Middle East, Asia Pacific, and Latin America/Caribbean regions all saw larger percentage increases during the same time period, 4%, 9%, and 9%, respectively. The only region that experienced a decrease in Q3 was Europe, where M&A activity dropped by 12% to 4,220.

The net result of all of these changes was that the combined number of transactions worldwide fell by 1% year-over-year, from 12,146 to 11,993.

Historically, Q4 is the busiest quarter for M&A. Therefore, we are expecting a strong fourth quarter in most regions.

The most notable M&A news in Q3 was the significant increase in transactions occurring in the United States/Canada region compared to Europe. This shift is quite unexpected, but it appears to be a trend that will persist in the upcoming quarters due to the ongoing economic challenges faced by European countries. The divergence in M&A activity between these two regions reflects a broader narrative of economic uncertainty and market dynamics that are influencing global investment trends.

Versailles Group is a Boston-based investment bank that specializes in international mergers, acquisitions, and divestitures.  Versailles Group’s skill, flexibility, and experience have enabled it to successfully close M&A transactions for companies with revenues between US$2 million and US$250 million.  Versailles Group has closed transactions in all economic environments, literally around the world.

Versailles Group provides clients with both buy-side and sell-side M&A services and has been completing cross-border transactions since its founding in 1987.  

More information on Versailles Group, Ltd. can be found at www.versaillesgroup.com.

Over the past four quarters, there has been significant growth in M&A activity in the middle market of Latin America and the Caribbean. Both the number of M&A deals, aggregate value, and average value of M&A transactions in these regions have increased substantially.

The number of deals have increased in each quarter, from 45 in Q3 of 2011, to 83 in Q4 of 2011, to 107 in Q1 of 2012, and finally to 135 in Q2 of 2012.

Additionally, the aggregate value of these transactions increased substantially, from US$2,203MM in Q3 of 2011 to US$11,043MM in Q2 of 2012.

In terms of the average value per transaction, the first three quarters mentioned had fairly consistent figures (US$48.9MM, US$41.9MM, and US$43.6MM). However, Q2 of 2012 saw an 87% increase in the average value per transaction, jumping to US$81.8MM. A portion of this spike can be attributed to the M&A activity in energy and consumer staples, which experienced exponential increases.

As a result of these drastic increases in M&A activity, Brazilian middle market M&A now represents 31% of all middle market M&A deals in Latin America and the Caribbean. There are a number of reasons for this, including currency factors, changes in antitrust laws, growth in infrastructure projects in Brazil related to the impending Olympic Games and World Cup events, etc.

Versailles Group represented SuperMedia LLC (Nasdaq:SPMD) in its sale of Inceptor, a North American Search Engine Marketing company, to Didit.com. This is the second successful divestiture Versailles Group has completed for SuperMedia.

Versailles Group has over 25 years’ experience in completing successful transactions. As an expert in international mergers, acquisitions, and divestitures, we would be happy to talk with you about how we could help your company with any M&A transactions you may be contemplating.

Here is a link, Yahoo Finance , to the actual Press Release or the text is listed below for your convenience.

BOSTON, Aug. 22, 2012 /PRNewswire-iReach/ -- Versailles Group, Ltd. ( www.versaillesgroup.com ) announced today that the assets of Idearc Inceptor, LLC a provider of SEO, Paid Search Marketing and Social Media Marketing, and a wholly owned subsidiary of SuperMedia LLC (SPMD), have been acquired by Didit.com. Versailles Group acted as exclusive financial advisor to SuperMedia. Terms were not disclosed. The transaction closed on August 21st.

Versailles Group, a 25-year-old Boston-based investment bank that specializes in international mergers, acquisitions, and divestitures, advised SuperMedia on the transaction. Versailles Group works with companies in the U.S., Europe, Canada, Asia, and South America.

"With Versailles Group's unique approach to Mergers & Acquisitions, we received responses on this transaction from over 200 prospective buyers in 25 different countries, said Donald Grava, Versailles Group's Founder and President. "We're excited that Didit emerged as the eventual buyer as it provides Inceptor with a number of synergies."

About Didit.com
Didit.com is a privately held industry pioneer in Search Engine Marketing and Digital Marketing founded in 1996. Didit's proprietary Maestro search and auction-based display campaign optimization technology combine with recent advances in the application of "Big Data" to SEM and display campaigns.

Didit pioneered the "Managed Technology" model of cross-medial digital campaign management for marketers and agencies, earning Didit.com both Inc. 500 and Deloitte Technology Fast 500 recognition as a rapidly growing company.

About Versailles Group, Ltd.
Versailles Group, Ltd. is a Boston-based investment bank that specializes in international mergers, acquisitions, and divestitures. It provides its clients with a high level of personal attention, international experience, and professional execution. Since 1987, Versailles Group's skill, flexibility, and experience have enabled it to successfully close transactions, both domestically and internationally, in all economic environments. More information on Versailles Group can be found on its website, www.versaillesgroup.com.

Contact: Donald Grava, (617) 449-3325

Media Contact: Donald Grava, Versailles Group, Ltd., (617) 449-3325, dgrava@versaillesgroup.com

There has been a substantial increase in M&A activity from Q1 to Q2 of this year. There were 3,482 deals announced this past quarter, which translates into a 33% increase from the 2,613 deals announced in Q1. Additionally, the total transaction value has increased nearly 54% from US$243,961MM in Q1 to US$374,962MM in Q2. This surge has also resulted in strong growth in the average value per deal, up over 15% from US$93.36MM per transaction to US$107.68MM per transaction.

In terms of the number of M&A transactions, every sector saw an increase from Q1 to Q2. The most significant growth was seen in the healthcare and consumer staples sectors, with 68.1% and 42.3% increases respectively. With regard to the change in the total transaction value, all but one sector saw a surge (materials).

The following graphs further highlight the changes between the two quarters in each sector.

All signs indicate that M&A growth will continue in subsequent quarters. The largest companies still have significant cash reserves and financial buyers are eager to deploy their capital. Additionally, technology trends such as cloud computing and social media will force larger companies that cannot keep up with innovation to target smaller companies with cutting-edge technology.