Connect with us

Hi, what are you looking for?

Loan And Finance

Global dealmakers reach first positive M&A performance since 2016 – WTW


Based on share-price performance, companies making M&A deals outperformed the World Index by +1.4pp (percentage points) on average.

In APAC, dealmakers recorded their strongest full-year performance since 2016, outperforming the index by +16.8pp, despite closing only fractionally more deals regionally compared to 2020 (196 versus 173), as fewer Chinese acquisitions continued to depress volume levels.

European acquirers outperformed their regional index and boasted a positive performance of +3.9pp and 199 deals closed in 2021, up a quarter on 155 deals in the previous 12 months. Meanwhile, UK acquirers have consistently outperformed the FTSE All-Share index over the last five years, recording a positive performance of +5.7pp for the year.

Jana Mercereau, head of corporate M&A consulting for Great Britain at WTW, said the firm expects the M&A boom in 2021 to continue this year, thanks to abundant investment capital, strong equity markets and cheap debt, and companies seeking to make their businesses greener by hunting for targets with the right climate credentials.

“M&A data coming out of North America also highlights the impact that historically high asset valuations, pushed up by competition and increasing complexity, can have on deal performance,” Mercereau added. “The question is whether prices being paid now will continue to make sense over time.”

The report identified possible M&A trends for 2022:

  • ESG (environmental, social, and governance) goals will drive M&A boom after recently becoming the top of CEO agendas, emphasizing the drive to improve employee engagement in a hybrid environment of work and purchasing, rationalizing, or divesting assets to improve their carbon footprint.
  • Digital transformation will accelerate as the COVID-19 pandemic increases the speed and scale of this change.
  • Companies will focus on supply chain-driven M&A to become more self-sufficient in their products and services due to the immense strain exerted on global supply chains by the pandemic, social unrest, cyberattacks, and extreme weather events.
  • M&A cycles will change due to the rising trend of building professional in-house corporate development teams.
  • Most dealmakers will aim to match or succeed their 2021 deal total. However, they might consider the impacts of inflation pressures and ESG issues on deal performance.

“M&A activity in 2022 looks poised to match the peaks of 2015, although deals will remain susceptible to increasing challenges,” Mercereau said. “High valuations, deal complexity, competition for high-quality assets and pandemic-fueled supply chain disruption will continue to have knock-on consequences for dealmakers. Deal speed, preparation, and quality due diligence will be essential if dealmakers’ expectations are to be met.”

.



Source link

Advertisement. Scroll to continue reading.

Click to comment

Leave a Reply

Advertisement

Latest

Loan And Finance

Based on share-price performance, companies making M&A deals outperformed the World Index by +1.4pp (percentage points) on average. In APAC, dealmakers recorded their strongest...

Technology

The New York State Office of the Attorney General (NY OAG) has warned 17 well-known companies that roughly 1.1 million of their customers have...

Top Stories

Binance Smart Chain-based yield farming protocol Arbix Finance was identified by blockchain security company CertiK as a rug pull. According to the firm’s incident...

Technology

Satechi has long been a great manufacturer of Apple accessories, and at CES 2022, they have announced two new products aimed to help people...

Online Business Success

One bad apple can rotten the entire bushel. getty In business, a company’s reputation can often come down to the lowest common denominator, the...

Online Business Success

Building and maintaining your company culture in a remote world is a must. getty Company culture isn’t just about free snacks and socializing. It...

Technology

In a nutshell: Walmart has announced plans to expand its InHome delivery service in the US, from six million households to 30 million by...

Online Business Success

With 2021 now at a close, it’s the perfect time of year to start looking forward to the year ahead and setting goals for...

Advertisement

You May Also Like

SEO Guide

How to index website on Google? Do you want to drive more organic traffic to your new website? I am sure your answer is...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Blogging

In this post, I will discuss the top ten profitable blogging niches ideas for Adsense approval and high traffic. whether you use Blogger or...

SEO Guide

Want to rank in Google image search? Images that you use as a featured images when writing a post actually appear on Google Images...

Advertisement