Current Global M&A Trends

It appears business leaders are confident in a strong economic recovery as global macroeconomic indicators, including positive GDP rates and high consumer price index (CPI) promise growth. This further whets the appetite for mergers and acquisitions among CEOs who expect this trend to improve over next 12 months according to a survey taken this year.

The global economy is a volatile one, with many countries experiencing high levels of inflation and geopolitical factors coming to light. However this has not stopped some major companies from taking advantage of the market by pursuing growth opportunities where they exist within their current portfolios as well as focusing on M&A strategies for expansion purposes; which will help them achieve industry reshaping goals faster than before!

The capital markets are booming with activity, and PE firms have never been more interested in funding your company. With over $1.9 trillion worth of dry powder on hand from private sources alone - along with other forms like bonds or even crowdfunding campaigns if you're feeling adventurous- there's no shortage when it comes to taking advantage! The only downside? All this money might just end up being spent by those who already know what they want.

The M&A landscape is set to shape up well into 2022 as both corporate and PE buyers compete for technology, capabilities and other sources of advantage. Corporate leaders are now prepared to pay more than ever before in order to achieve long term growth with synergies that fuel it—the result being: an increasingly competitive market where cost cutting alone won't do the trick anymore!

Advancement from the competition

Many companies are reassessing their strategies in light of recent global disruption. This has led to both strategic acquisitions and divestitures as they redirect management resources, funds into those parts with high growth potential where there is a distinctive competitive advantage that can be enhanced through M&A practices like acquisition for capabilities not currently present within the business - often focusing on technology-related areas.

It's not a surprise that companies with competitive advantages were able to incorporate technology into their products and services during this pandemic. Leaders at these organizations recognized how important acquiring new technologies is, leading them in efforts for deal-making whether through outright acquisition or joint venture agreements.

Window of opportunity for growth and value addition

The demand for large corporations to take over smaller competitors is reaching an all-time high. As these mergers and acquisitions (M&As) continue, there have been more announcements than ever before in 2021—megadeals with deal values greater than $5 billion were made throughout the first half of this year alone! This recent string activity offers both scale benefits or transformational strategic edge that can unlock value from combinations while also addressing issues related to highly valued stocks through stock swaps agreements. The future is all about partnerships. Strategic tie-ups are the wave of future, with many more to come in 2022 and beyond!

Capability-led deals can be difficult to implement because they are usually more focused on revenue synergies than cost savings. However, another survey found that only 13% of respondents had favorable results in capturing a significant amount of cost reduction from their collaboration with another company—supporting what dealmakers have known for some time: realizing these kinds or benefits is challenging even when there's an opportunity!

SPACs

The number of new space explosions has slowed to a trickle, with the SEC putting forth new financial reporting guidance for SPACs in April. This resulted in an increase of restatements across all industries and markets during early###-###-#### overwhelmingly seen during February-March) and continued attention from regulators finally paid off as they helped contain some potential risks associated within these company's filings. The future of SPACs is uncertain, but we don't think they'll go away any time soon. Poor post acquisition returns may affect those yet to close deals and secure financing - after all it's not just highly valued companies like technology oriented ones that take this route anymore!

With almost a half trillion dollars in buying power and an urgency to find acquisition candidates, SPACs are likely to keep competition stiff. With over 400 existing ones that have yet to identify their target for M&A by end 2022 there is potential for strong growth with more activity expected as 2021 draws near. The pressure to win is intense, but so too are the stakes for dealmakers. If they don't do their job properly then risk isn’t just an issue - it could cost them everything!

ESG

The world's major corporations have been making changes to their business practices in response to the growing social and environmental issues. Some companies are choosing a more environmentally friendly direction, while others aim for equality among employees or greater public safety standards within communities where they operate. However it may be different from company-to-company; these factors all impact what deals should look like going forward so dealmakers must take them into account when assessing any potential transaction outcomes.

PE is focusing on ESG matters as part of both M&A strategy and process. Whether preparing to divest a company or acquire one, due diligence can help assess value for companies that are not considered environmentally friendly risks-taking in order to be proactive about their environmental footprint while also ensuring they get ahead with any competitor who may have done so first!

Bottom line

We can expect a greater variety of M&A activity by the next year, as companies are hard-hit by pandemic conditions. Supposably, many airlines and other businesses that continue to be impacted may face liquidity challenges in this period due largely because governments could phase out support soon enough. However, the sell-side is still optimistic about the prospects of M&A, but they are hedging their bets with capability deals instead. The market may be ready for more outcomes than just capital gains; creating value from a transaction remains challenging in today's environment and there can never really be a single deal scenario because factors like selecting targets or conducting due diligence depend on each other!