Merrill DataSite® Survey: Transatlantic Restructuring Activity to Increase Over the Next 12 Months

NEW YORK, Sept. 14 /PRNewswire/ -- According to a recent survey of legal and financial advisors conducted by Merrill DataSite, in cooperation with mergermarket and DebtWire, transatlantic restructuring activity is expected to increase over the next 12 months due to the financial stress put on companies in recent years. This will ultimately produce opportunities for strategic and financial buyers.  

More than half of the respondents (54 percent) indicated that most restructuring strategies would hinge on the sale of non-core assets. A majority of respondents expect real estate (59 percent) to experience the highest volume of restructuring-related asset sales, divestiture and spin-offs, followed by financial services (35 percent).

Given the economic climate and the number of companies filing for bankruptcy, it comes as no surprise that the majority of survey respondents cited the maturity of company debt as the main driver behind restructurings. More specifically, they believe that restructuring in North America will stem from distress in the corporate world, while restructuring in Southern Europe will be more contingent on the debt crisis occurring in the region.

"The large number of global companies filing for bankruptcy, and thus reorganizing, points to a potential increase in transatlantic restructuring," said Richard A. Martin Jr., senior director of Merrill DataSite. "Although the restructuring of organizations often has a negative connotation, these events should ultimately jumpstart the economy by increasing deal flow.  As our report indicates, these restructuring activities will mainly revolve around non-core asset sales."

When asked what region will have the highest level of restructuring activity over the next 12 months, the largest percentage of respondents (41 percent) pointed to North America, followed by 28 percent who said Western Europe would have the highest level, and 20 percent who indicated that Southern Europe would.

The survey also suggests that the real estate sector is expected to undergo the most significant restructuring activity in the next 12 months. Respondents also project that the consumer sector will see the most restructuring activity in Central and Eastern Europe, while automotive and industrial companies will restructure the most in Germany.

The survey was conducted in the second quarter of 2010 and included legal and financial advisors from North America and Europe. Please click here to view the full survey report.

About Merrill DataSite

Merrill DataSite® (www.datasite.com) is a secure virtual data room (VDR) solution that optimizes the due diligence process by providing a highly efficient and secure method for sharing key business information between multiple parties. Merrill DataSite provides unlimited access for users worldwide, as well as real-time activity reports, site-wide search at the document level, enhanced communications through the Q&A feature and superior project management service - all of which help reduce transaction time and expense.  Merrill DataSite's multilingual support staff is available from anywhere in the world, 24/7, and can have your VDR up and running with thousands of pages loaded within 24 hours or less.

With its deep roots in transaction and compliance services, Merrill Corporation has a cultural, organization-wide discipline in the management and processing of confidential content and Merrill DataSite is the first VDR provider to understand customer and industry needs by earning an ISO/IEC 27001:2005 certificate of registration – the highest standard for information security – and is currently the world's only VDR certified for operations in the United States, Europe and Asia. Merrill DataSite's ISO certification is available for review at: www.datasite.com/security.htm.  

As the leading provider of VDR solutions, Merrill DataSite has empowered nearly 2 million unique visitors to perform electronic due diligence on thousands of transactions totaling trillions of dollars in asset value. Merrill DataSite VDR solution has become an essential tool in an efficient and legally defensible process for completing multiple types of financial transactions.  

About mergermarket

mergermarket is an independent Mergers and Acquisitions (M&A) intelligence service with an unrivalled network of dedicated M&A journalists based in 62 locations across the Americas, Europe, Asia-Pacific, the Middle-East and Africa. Unlike any other service of its kind, mergermarket specializes in providing forward-looking origination and deal flow opportunities integrated with a comprehensive deals database – resulting in real revenues for clients. Visit www.mergermarket.com.

SOURCE Merrill DataSite®