Global M&A outlook: there’s no place like home
In an uncertain global environment, cross-border deals have declined by 27% as investors turn their attention to domestic markets to do what are often big, strategic deals, and with the top 10 deals of the year all within one country.
Overall global trends show that deal value and volume are down by around 7% and 10% respectively but despite this, 2019 is still set to be the third strongest year to date in terms of value and the fourth strongest in transaction volume for a decade.
The fact that the market is still so strong when anxieties are rising around macroeconomic issues is proof that many investors are keeping their nerve.
This is underlined by a resurgence in strategic megadeals, which are once again powering the market.
The other clear trend is the continued slowdown in cross-border deals – down by 27% – and the dominance of big domestic transactions, not just in the U.S. but globally, with the top 10 deals this year all homegrown within one country.
Most sectors, with the notable exceptions of life sciences and financial services, are feeling the pressure of these more uncertain times, and it is clear that many investors, notably PE funds, are expecting to see an adjustment in the market in the coming months, although not a sharp slowdown. Next year may well test nerves more sharply, but investors will, we believe, continue to be active, absent significant political or economic shocks.
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M&A Insights Q4 2019
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