Deal-makers bullish on M&A prospects for the year
Deal-makers are more bullish about prospects for M&A and capital raising this year than they were at the start of 2019.
According to figures from Refinitiv, 47 per cent of deal-makers anticipate M&A volume growth, with an average predicted growth of 4.7 per cent.
Asian dealers are more bullish than their American and EMEA counterparts, anticipating a 10.4 per cent increase in global growth.
Refinitiv’s deal sentiment survey found that deal-makers focused on the economy, trade and politics as key themes that will impact M&A this year.
After Brexit 62 per cent of deal-makers consider European companies more attractive which is an increase from 2018. A similar proportion consider UK companies to be less attractive.
It seems that technology will get a boost this year as deal-makers indicate they are most optimistic about technology with 64 per cent expecting an increase.
Additionally four in five corporations believe they will make an acquisition in their own industry in 2020, while 57 per cent believe they will acquire a business in another industry.
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Refinitiv’s deals intelligence director Matt Toole said: “It is, perhaps inevitable that fundamental factors such as economic growth and government policy remain top of people’s minds, although it is also notable that concerns over protectionism have started to fall away.”
“What is more surprising is a continued nonchalance in terms of the big media themes – climate change, Brexit (particularly outside of EMEA), technological disruption or ESG.”
“The lines between tech and other industries are increasingly blurred. Importantly, corporate optimism appears to be holding up, both in terms of in-house dealmakers’ expectations of making an acquisition this year (better than evens) and the prospects for revenue growth in the year ahead (on par with 2019).”