Pandemic has not reduce the appetite for cross-border M&A
The latest report “Global dealmakers. Cross-border M&A Outlook”, prepared by international network Baker Tilly International in cooperation with Margermarket, shows that 95% of the dealmakers surveyed were able to finalise cross-border deals in the past year – all this despite lockdowns and limited ability to travel between countries.
More than halfof respondents (56%) say COVID-19 has increased their appetite forcross-border M&A deals, which will result in the flurry of activity expected throughout the remainder of 2021.
The report also shows that dealmakers take into consideration the increased risk related to lingering pandemic and the need to pursue M&A as a means for growth and transformation of their organisations.
International transaction activity in 2021 is on an upward wave, following the slump seen in the second quarter of 2020. Recently, notable changes in consumer behavior (accelerated digitization of societies) and transformation and restructuring needs have joined the important motives for choosing the transaction target. However, there has been a noticeable increase in buyer caution when making investment decisions, manifesting itself in a significant increase in demand for a comprehensive and efficient due diligence process. The Polish M&A market has been hit harder by the pandemic perturbations and the number of transactions has been very low recently. Baker Tilly respondents confirm that the challenges of the months ahead for dealmaking mean that external advisors are needed like never before. – says Tomasz Manowiec, Head of Corporate Finance, Baker Tilly TPA.
Key highlights of the report:
- 49% dealmakers say they will look for cross-border opportunities in North America and Western Europe
- 71% say that protectionism in key markets is getting worse
- 53% say mid-market M&A will see the most deal activity in the year ahead
- 72% believe that financing market conditions will improve through 2021.
We invite you to read the entire “Global dealmakers. Cross-border M&A Outlook”
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