Making smarter deals in a changing environment: Due diligence
Welcome to Forging ahead
, PwC's quarterly analysis of mergers and acquisitions (M&A) in the global metals industry. In addition to a detailed summary of M&A activity in the first quarter of 2010, we supplement this issue with a special report that takes a deeper look at performing better M&A due diligence in a recovering economy and the ever increasing importance of considering how cultures will mesh and function financially, technologically, and operationally. The discussion includes emerging or existing areas of diligence for which additional emphasis may be appropriate in today's due diligence process such as healthcare, climate change, changing tax laws, information technology, and human resources.
The first quarter 2010 mergers and acquisitions analysis indicates that the volume and value of deals announced improved moderately from the quarterly lows of 2009. Although down from the 34 deals announced in the fourth quarter of 2009, the 21 deals announced in the first quarter of 2010 rank above the three-year quarterly low of 17 deals announced in both the first and second quarters of 2009. Additionally, the $5.9 billion deal value announced in Q1 2010 remains above the three-year quarterly low of $4.6 billion in the third quarter of 2009. While deal totals have not yet fully recovered from the downturn, the environment is becoming more conducive to deal activity in the metals sector.