GLOBAL DEALMAKERS:
The first six months of 2020 were marked by a pandemic and fears of a recession. As a result, dealmaker confidence in the North American market was shaken and the remainder of the year may not be much brighter.
The COVID-19 resurgence, trade wars, social and economic unrest, lockdowns, and an upcoming presidential election have contributed to a downturn in mergers and acquisitions dealmaking, according to the most recent research conducted by Baker Tilly International and Mergermarket. After interviewing 150 dealmakers from across the world, some of the key findings were:
To take the pulse of the current M&A market and get a sense of executive and investor intentions for 2019 and the year ahead, Baker Tilly International conducted research with Mergermarket to interview 150 dealmakers from across the globe. Some of the key findings include:
55%
55% of dealmakers say they will decrease investments into North America in the year ahead
87%
87% say the recent spread of COVID-19 is having a negative impact on their investment decisions
50%
50% say they will not consider cross-border M&A until the pandemic abates
48%
48% say the level of private equity activity will increase over next 12 months
47%
47% say the upcoming US elections in November will have a negative impact on M&A, while 30% say it will have no impact at all
83%
83% say distress-drive M&A will be the top deal driver in the year ahead
This latest issue of the ‘Global Dealmakers: Crossborder M&A outlook’ series explores current trends and challenges shaping the North American M&A, while also exploring opportunity areas where dealmakers are likely to find value in the year ahead.