Deals over the past year are noted as being increasingly driven by interest in and from the high growth markets, especially China, India and Brazil, but certainly not limited to these few. Based on last years deals 2012 potentially provides attractive destinations for Swiss businesses.

The KPMG “M&A Yearbook Edition 2012” has just been released and reveals that the number of mergers and acquisitions that took place in Switzerland during 2011, increased by 20.6 % to a total of 316. The overall volume of these transactions, however, declined 14.9 % to USD 74.5 billion.

So while smaller transactions both for consolidation and succession reasons kept up activity, larger transactions involving potentially higher financing needs as well as risk appetite were rare, especially in the second half of 2012. Despite the various economic challenges and the increasing risk adversity, 2011 did yield a number of outstanding transactions, including strategic many outbound deals into emerging markets in particular.

Low gearing and high liquidity in some industries – especially in Consumer Markets and partly in Industrial Markets – as balance sheets recover following a period of strategic reviews and divestments, mean there remain plenty of Swiss firms with sufficient firepower to pursue large transactions both domestically and abroad. Others, such as Chemicals or Technology, will further commit to transactions, though they are likely to spread their spend also over a number of smaller, strategic acquisitions, rather than going primarily for high ticket deals.

Overall, pricing and multiples are expected to remain firm as the year progresses. Of course, a caveat on this is developments in the Eurozone and broader European and North American economies as well as the drive of the defined global growth markets.

While many firms that were awaiting improved economic conditions before re-committing firmly to the acquisition trail they may more and more be persuaded to actively pursue attractive targets in the coming months.

I have faith that 2012 will turn out to be a year to remember; a year in which the clouds finally life and Swiss M&A levels exceed their recent heights, with many exciting and transformational deals ahead.