Mergers and Acquisitions in North America Set for Success in Q2 2021
North America is more than ready to roll.
2 March 2021
For North America, a combination of abundant private equity (PE) dry powder and low interest rates are setting the stage for a very active mergers and acquisitions (M&A) market in Q2 2021 and beyond.
While managers are pondering strategies for dealing with inevitable policy changes, Special Purpose Acquisition Companies (SPACS) and other alternative capital structures are forcing companies to consider all options. Dual- and multi-tracking is becoming more common.
Activity by sector, however, is a mixed bag. Commercial aerospace is struggling from the impact of the COVID-19 pandemic. Insurance has shown positive growth boosted by the use of tech.
But the King of the Hill remains Pharma and Life Sciences. High levels of recent investment have created high valuations — and higher competition — forcing many companies to divest or sell. A close second: Tech. Elevated by the COVID-19 health crisis, it’s been boosted by cloud-based solutions in a new remote-work world.
Nonetheless, policy will always play a role in M&A growth. Despite President Biden’s desire for more regulation of Big Tech, meaningful policy may come later rather than sooner as the administration focuses on other issues.
Find out more in the Q2 2021 SS&C Intralinks Deal Flow Predictor. Independently verified as a highly accurate six-month forecast of merger and acquisition (M&A) activity, the report SS&C is compiled by tracking early-stage M&A transactions globally that are in preparation or have begun due diligence.
The issue also has a spotlight feature on the aforementioned Big Tech and how M&A could play a role if antitrust scrutiny leads to forced breakups. There’s also an engaging interview with Executive Investments and M&A Director Europe and Brazil Raquel Perez Martinez of EDP Renováveis (EDPR) about the surge in transactions across the renewable energy sector and what promise environmental, social and governance (ESG) holds for M&A.