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Global M & A steadily launches in 2022 – Report

In the first quarter, there were even more mega deals (valued at over US $ 10 billion) than the corresponding period, according to a WTW report produced in collaboration with the M & A Research Center at Bayes Business School (formerly Cass). .. In 2021 (6 to 5), when the market experienced a sharp recovery in trading activity. Foreign acquisitions of UK companies also surged to the highest level since 2015, closing 13 transactions in the first quarter.

Jana Mercereau (pictured above), Head of M & A Consulting for a British company at WTW, said: .. “Many companies seeking rapid transitions in the areas of climate, technology, inclusion and diversity see strategic acquisitions as an important part of accelerating this change, so geopolitical and economic volatility. May be on the rise, but there is still great momentum to drive M & A. “

Mercereau said slow deals (those that took more than 70 days to complete) performed best in the first quarter of 2022.

“Given the additional complexity of ESGs, investing more time and resources to ensure quality due diligence in potential transactions only helps reduce risk and create value. “She said.

One of the lasting high levels of direct impact of global M & A activity was to push valuations to new highs. This is a potential major factor for acquirers who struggled to derive value from their transactions in the first quarter of 2022. According to WTW, companies that completed transactions in excess of US $ 100 million fell an average of 4.4 percentage points below the World Index in the first quarter.

Acquirers in all regions except the Asia Pacific region were down in the first quarter. APAC’s acquirers outperformed the regional index, closing 46 transactions and overall performance of +13.3 percentage points. The North American acquirer was -5.3 percentage points below the index with 116 transactions closed, while the European acquirer was 4.3 percentage points below the index with 49 transactions completed.

“Geopolitical turmoil, increased inflation, increased regulatory oversight of M & A transactions, and continued supply chain turmoil present many challenges for companies planning to trade in the coming months. “Mercerow said. “Nevertheless, in addition to continued vaccination development and relaxation of COVID-19 restrictions, there is a compelling reason for dealmakers to be optimistic. Despite macroeconomic headwinds, global economic performance Is expected to improve, and the overwhelming weight of capital available to private equity companies and the excess cash on the company’s balance sheet suggests that the trading pipeline will remain strong over the foreseeable future. “

Global M & A steadily launches in 2022 – Report

Source link Global M & A steadily launches in 2022 – Report

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