Global M&A Dealmakers Signal More Activity in 2023: Sentiment Report
WINDSOR, CT, January 18, 2023 (PR NEWSWIRE) – SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced the publication of the SS&C Intralinks 2023 Global M&A Dealmakers Sentiment Report.
In association with Mergermarket, SS&C Intralinks surveyed 300 global M&A dealmakers from 225 corporations and 75 private equity firms to see where the market is heading and the challenges and opportunities.
"Despite continuing headwinds and a difficult dealmaking environment, market sentiment remains optimistic," said Ken Bisconti, Co-Head of SS&C Intralinks. "M&A professionals are adapting and finding new ways to create value in their deals, manage ESG and DEI topics, and increase productivity with the digitization of due diligence."
Key findings from the report include:
- 62% of respondents expect overall levels of M&A activity to increase over the next year.
- 72% expect ESG issues to receive more scrutiny in M&A processes over the next three years—a 10% increase from 2022.
- 68% say deal automation will affect M&A processes in the next 12 months, compared to 42% last year.
- 64% of private equity dealmakers expect to undertake four or more deals over the next 12 months, compared to 34% of corporate dealmakers.
- More than half of respondents said the diversity balance of an organization is important in new targets.
The report also highlights the following key considerations for M&A dealmakers in the coming year:
- Corporate buyers with a clear strategic agenda see more opportunities to accelerate transformation during periods of affordable valuations.
- During due diligence, dealmakers can avoid lengthy and vulnerable deal processes with robust tools, including VDRs.
- Acquirers must approach M&A through an ESG lens, but beware of "greenwashing" and scrutinize targets' claims on ESG in more detail.
- Funding is becoming increasingly challenging as capital costs rise and lenders become more risk-averse. Buyers should ensure they have funding and contingency plans if lenders withdraw due to changing circumstances.
SS&C Intralinks is a pioneer of the virtual data room, enabling and securing the flow of information by facilitating M&A, capital raising and investor reporting. SS&C Intralinks has executed USD35 trillion worth of financial transactions on its platform.
About SS&C Technologies
SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.