Global M&A Market Maintains Its Momentum

The mergers and acquisitions (M&A) market has advanced by leaps and bounds from the brief pause that took place in March 2020 at the onset of COVID-19 and the global lockdown. While new deals faced almost a hard stop and markets froze, dealmaking resumed in the latter half of Q1 2021. The markets have since roared back and have soared to new highs — especially, according to Refinitiv data, in cross-border M&A value.

Barely a pain point

In terms of the M&A market outlook for Q3 2021, the latest data featured in the newly published Q3 2021 SS&C Intralinks Deal Flow Predictor is showing that globally, early-stage M&A activity is expected to reach high levels during the upcoming quarter. Our market prediction show growth in both deal-preparation activity and deal closing, even in countries still impacted by the health crisis.

For Q3 2021, we anticipate global M&A announced volume will overperform against Q3 2020 with Asia Pacific (APAC) leading the way. Post-COVID-19 headwinds in the M&A markets certainly exist, as we describe in the new report, with some uncertainty in Commercial Real Estate and Energy and Power.

Surging sectors

Sectors to watch in Q3 are TMT, Technology, Healthcare, Energy, Infrastructure and Transportation. Banking is also showing significant activity in certain geographies. 

In terms of the market’s mood, things are busy, especially for bankers experiencing strong competition on many opportunities. Valuations are high, but there’s an impact to certain corporates who see private equity (PE) firms often competing on strategic assets.

Our analysis shows the basics have been driving the markets: low rates and confidence. Special purpose acquisition companies (SPACs) are an accelerator of deals while M&A is still the best way to show growth.

Find out more in the Q3 2021 edition of the SS&C Intralinks Deal Flow Predictor. Independently verified as a highly accurate six-month forecast of merger and acquisition (M&A) activity, the SS&C Intralinks Deal Flow Predictor is compiled by tracking early-stage M&A transactions globally that are in preparation or have begun due diligence.

Along with our forecast of M&A activity for the next six months, the latest issue of the SS&C Intralinks Deal Flow Predictor includes a spotlight feature on the SPACs wave as well as an interview with Jeff White, partner at Skyview Capital, on the competition against SPACs for assets by the PE market — and what affect the pandemic has had on the category as a whole.