Global Mergers & Acquisitions in Q2 2021: A Major Corner Turned for M&A?2 March 2021
According to our prediction, Q2 will continue a vigorous march forward.
If the past two quarters showed a robust pickup in mergers and acquisitions (M&A) activity, the approach of a vaccine-powered turn from the COVID-19 health crisis shows no sign of a slowdown for Q2 2021.
Led by North America and Asia-Pacific, we’re predicting a high peak in announced new deals. We get into many of the nuts and bolts of growth — and how each sector ranks — in the Q2 2021 SS&C Intralinks Deal Flow Predictor out now.
Up to this quarter, dealmakers have had their share of obstacles. Technology became the must-have in conducting deals, from web conferencing to electronic signature tools to new file types for conducting due diligence. Even drone technology has helped the market adapt to the challenges of the last year.
Has tech taken the place of travel and physical meetings? Not fully. But based on activity, it seems to have played a worthy role in allowing transactions to unfold.
Expected sectors remain strong
Based upon our forward-looking view from early-stage deals on our platform that have yet to be announced, technology, pharma and energy will remain strong into Q2 2021. But with low valuations in other industries, buyers are also looking for tactical opportunities to show growth. So some pandemic-related distressed assets may now become interesting options for private equity (PE).
Our new report signals where we can expect waves of restructuring activity, a repercussion from last year’s shutdowns.
Will all lights stay “green?”
Activity is up and the mood among clients has been very positive. While due diligence remains a challenge because of lockdowns, travel bans and social distancing, there’s potential for Q2 to meet the highs of 2019 in deal volume.
Lastly, with most of the external political factors behind us, interest rates are still at the level we need them to be. Even if we’re not there yet, we have a market seeing the light at the end of a COVID-19-created tunnel.
Find out more in the Q2 2021 SS&C Intralinks Deal Flow Predictor. In addition to our global and regional forecast, the issue includes a spotlight feature on what’s ahead for M&A Big Tech now that governments have them under expanded scrutiny for antitrust? There’s also an interview with Raquel Perez Martinez, executive investments and M&A director Europe and Brazil at EDP Renováveis (EDPR), about the surge in transactions across the renewable energy sector — and what promise ESG holds for M&A. I wish you happy reading and successful dealmaking.
Laurent Sultan is senior vice president of global sales at Intralinks.
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