Chemical compounds

Fourth quarter 2010 global chemicals industry M&A analysis

Repositioning for growth: The tax implications of expanding into a VISTA country


In addition to a detailed summary of M&A activity in the quarter, this edition features a special report that discusses potential growth opportunities in emerging markets that may not have already been considered. As company executives analyze the long-term risks and benefits associated with such an endeavor, it is particularly important to understand each region’s tax liabilities and advantages. In repositioning for growth, tax strategy may be the deciding factor.

Based on our deal pipeline, the higher level of announced deal activity reported in 2010 was in line with our expectations. While the number of deals year to date surpassed 2009, we also saw fundamental differences in the type of deal activity.

In fourth-quarter 2010, we noted a change in the pace of the deal process, which may be an indication that companies are able to move more quickly through diligence with an additional quarter of “post-downturn” results and/or an increase in the level of competition in the bidding process. This faster pace will require that companies enter the bidding process well prepared and prioritize their diligence issues and requests to be able to move quickly with limited information.