Fireside Chat, Interview, Other
Big, Bold, Strategic Moves: The 2021 M&A Outlook
- Corporate activity in 2021 has commenced at double the activity level recorded in the first half of 2020.
- Boards and investors are actively encouraging aggressive repositioning and growth strategies, with a notable shift toward higher risk appetites for large, bold, and complex strategic moves.
- Virtual management meetings and drone technology for site visits are expected to persist based on client preference, though face-to-face interaction remains critical for transatlantic M&A.
- The worst of the pandemic is projected to conclude in the second half of the current year, with economic growth expected to resume strongly, particularly in the US and Europe.
- Clients are positioning businesses for strong growth starting from the second half of the year extending into the next, focusing on large global repositioning throughout 2021.
- Cross-border and international M&A activity is anticipated to rebound in 2021, driven by a return of large-ticket deals and significant activity between different continents.
- The number of transactions exceeding $10 billion is increasing rapidly from the second half of 2020 and is expected to continue throughout the current year.
- The market is witnessing an uptick in unsolicited and fully hostile situations due to evolving client sentiment.
- While the SPAC market remains a relevant alternative for going public, corporate M&A remains the primary driver of overall market activity.