Disruption drives the next wave of dealmaking.
It’s customary for opening letters to provide a summary of the report and highlight a few key findings. If you expected that, I’m sorry to disappoint — let us do something a little different.
Instead, I will answer the key question: Can heightened geopolitical uncertainties and buoyant M&A coexist?
Why? Because geopolitical concerns, though a mainstay feature of the boardroom, are overshadowed by more immediate and pressing risks and opportunities. Geopolitical issues may dominate the headlines, but boards are laser focused on countermeasures against technological disruption and seizing new routes to growth. Those countermeasures will often involve M&A.
But, while technology and digital disruption are major drivers of the current market, other considerations are also spurring deal activity. Geographical expansion to secure supply chains and increase customer reach will accelerate cross-border M&A. Private equity is returning to replenishing mode. Lastly, corporates are increasingly reassessing and reshaping their portfolios, creating a natural pipeline of deal opportunities.
Consequently, the M&A market is healthy. And we can expect further deal activity. As our front cover indicates, the search for growth is a green light for dealmakers.
Skeptics may maintain that heightened levels of deal activity lead to too many bad deals being pursued. However, this is not the case in today’s M&A market. Companies are using advanced analytics, combined with data-driven diligence and integration, to target the right deals and integrate them in the right way.
The result: A strong outlook for dealmaking prevails.
Global Vice Chair
Transaction Advisory Services
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Download global report (PDF)Press release: Economic confidence and growth imperative overshadow geopolitical concerns and spur further M&A