Interview, Press Conference, Conference Presentation
Big, Bold, Strategic Moves: The 2021 M&A Outlook
- First-half 2021 transaction volume is running at double the level of the same period in 2020.
- Activity is projected to resume strongly starting in the second half of 2021 and continuing into 2022, driven by the anticipated end of the worst pandemic impacts following vaccine availability.
- Growth expectations are particularly high for the US and significantly for Europe, with boards and investors encouraging aggressive corporate repositioning and strategic expansion.
- Capital markets feature tremendous equity capital, open conditions, and a heightened risk appetite that supports bold moves, including increased unsolicited and hostile transactions.
- Transaction patterns are shifting toward large-ticket deals, specifically cross-border and global repositioning, with over $10 billion situations expected to increase rapidly through the second half of 2020 and continue into 2021.
- The M&A market will remain driven by corporate activity rather than SPACs, though SPACs remain relevant to the IPO landscape and are beginning to see private equity involvement.
- Operational practices are evolving with a persistence of virtual management meetings and drone technology for site visits, while face-to-face interactions remain critical for cross-border M&A and are guided by client preference.
- Risks include potential volatility in the market, while opportunities arise from favorable stock prices, available financing, and a robust dialogue regarding strategic moves for the coming growth period.