Almost half of privately held businesses to grow through acquisition - press release

According to the International Business Report, produced by Grant Thornton International, despite the current turbulence in the world financial markets, 44 per cent of privately held businesses (PHBs) globally are planning to grow through acquisition in the next three years and 23 per cent of those businesses anticipate a cross border deal. PHBs see domestic and international M&A as a key strategic tool to drive growth.

Ian Smart, service line leader for M&A at Grant Thornton International says, "Whilst PHBs may not be conducting headline grabbing deals that catch the public's interest, they are increasingly becoming more confident and successful in transacting internationally. In particular, PHBs in the fast growing economies such as mainland China and India see international M&A as one means of progressing up the value chain through the acquisition of brands and distribution channels in North America and Europe."

The survey reveals that business owners in the fast growing BRIC economies are now embracing M&A, with 59 per cent of businesses in BRIC countries reporting an anticipated acquisition in the next three years. This supports the findings of the IBR business optimism survey which identified business owners from the emerging economies as the most optimistic in the world.

Pankaj Karna, M&A partner from the Indian member firm of Grant Thornton International believes this reflects the current positive attitude amongst business owners in the emerging economies. "Three factors are driving overseas acquisitions by Indian privately held companies. Firstly they want to be globally competitive and close to their customers, secondly they want to acquire technology and thirdly relative valuations look favourable. Fundraising is easier now than it was 5 or 10 years ago. Privately held businesses in India are particularly positive now."

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Notes to editors:
Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.

About IBR:
Grant Thornton International started a major annual survey of the attitudes and expectations of small and medium-sized businesses in 1992 called the European Business Survey (EBS). In 2003 the research project was widened to an international perspective covering medium-sized businesses and renamed the International Business Owners Survey (IBOS).

In 2007, the survey’s name was changed from IBOS to the International Business Report (IBR). The IBR survey draws upon 16 years of trend data for original EBS participants and 6 years for original IBOS countries. The 16 year trend data is available for: France, Germany, Greece, Ireland, Italy, Netherlands, Spain, Sweden and the United Kingdom, while the 6 year trend data is available for Australia, Canada, Hong Kong, India, Japan, Mexico, Russia, Singapore, South Africa and the United States.

Grant Thornton International will donate US$5 to UNICEF for every completed IBR questionnaire. In 2008, this will result in a donation of over US$39,000.

The research was conducted by Experian Business Strategies Limited. To find out more about IBR and to obtain details of IBR reports and results please visit www.internationalbusinessreport.com .