Internal audit can add value to the M&A life cycle

Why now?

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According to our April–October 2012 Capital Confidence Barometer, a survey of senior executives from large organizations around the world, global confidence in the economic recovery is markedly more optimistic.

52% of executives now think that the global economy is improving.

Fifty-two percent of executives now think that the global economy is improving. In fact, companies are looking to grow — 52% cite growth as a primary focus, the highest response since the survey began in April 2010.

This optimism is feeding an increased appetite for acquisitions. Emerging market investment appears particularly enticing for the following sectors:

  • Financial services
  • Life sciences (including health care)
  • Consumer products
  • Oil and gas
  • Technology

On another positive note, the likelihood of closing M&A deals is expected to be greater than it was six months ago. This is encouraging, as 31% of companies plan to divest assets and 31% look to acquire.

Emerging market growth, valuation, the complexity of the control environment and increasing regulatory pressures are urgent issues on which internal audit can provide critical input and strategic value early in the M&A life cycle.

 


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