One of the strongest testers for business confidence is the level of mergers and acquisitions, or M&A’s. They suggest a business community looking to grow and expand, to travel to new cities and increase their global footprint. In 2012 the number of M&A’s was fairly low as the global recession continued. Business was less willing to increase its assets and instead wanted to focus on staying where it was. However in 2013 the picture looks more positive. This is good news for firms like Clarendon serviced apartments which caters for the business travel market.
M&A is a billion dollar industry. The energy sector is set to see major deals from cash rich organisations in China as they look to shore up their position as one of the world’s most powerful economies. As the demand for shale gas grows, so will the deals to secure extraction. Mining will continue to grow in emerging economies like China and Brazil. Technology remains one of the most important markers of a country’s growth with innovation often seeing the global names of Microsoft, Google and Apple coming calling. The past generation has seen an unprecedented growth in the technology sector as consumer behaviour has changed. Much investment will go to those who are ahead of the curve, who see the change before it happens, helping the technology giants stay at the head of the pack. Although its still early, many analysts are predicting a good year for M&A, compared with 2012.
What does that mean for business travel? It inevitably means good things. An upswing in M&A’s and corporate takeovers means more business travel for a start. CEOs, CFOs, deal makers, lawyers and bankers will have to travel the globe to sign on the dotted line but also, once the deal is done, staff will be relocated and there will be mergers and acquisitions in terms of new members of staff as well as firm to firm. As a financial capital London is an important place on the list for those taking part in M&A’s while the capital is also home to many of the world’s biggest firms, like Google and HSBC.
For Clarendon serviced apartments, providing accommodation for business travellers there would be a welcome boost. During a merger business visits are not just overnight but can be several weeks at a time. A serviced apartment, either located close to the office or an easy commute away in a suburb like Richmond, are an attractive alternative to a hotel. A luxury apartment provides space and the ability to live flexibly, without being constrained by a hotel. In the long run, visitors want to be comfortable. being able to cook their own meals as well as look after their own laundry makes an easier transition. For new members of staff who will relocate or will have to visit the newly acquired company, a longer visit is better suited to a serviced apartment, which becomes increasingly cost-effective as the visit runs into weeks rather than days.
An increase in mergers and acquisitions is an indicator of an increasing business confidence. An upturn would be welcomed by Clarendon serviced apartments as catering for business travellers is part and parcel of our business as they look for a comfortable and luxurious place to stay while on the road.