Insights

Global M&A Activity 2019 – Deal Makers Optimistic for the Year Ahead

April 2, 2019

Refinitiv has announced the findings of its annual Deal Makers Sentiment Survey conducted by Greenwich Associates – a survey which provides a quantitative assessment of M&A related and capital market activity in the year ahead.

The survey has revealed that, despite market turbulence, reassurance has been offered in terms of M&A and capital market trends as the deal making professionals surveyed are cautiously optimistic for the year ahead.

While there is uncertainty surrounding the economy, the top objectives for corporates in 2019 include expanding the scope of product offerings, acquiring high-growth businesses, and expanding geographical presence, suggesting that while overall macro-economic sentiment is strained, other motivations in executing a deal remain robust.

That could be good news as corporates start to care more about their own fundamentals, with revenue and profitability top priorities for 2019.

Jennifer Perkins, corporate partner at law firm Kirkland & Ellis does not believe that economic uncertainty means an end to dealmaking: “Everyone thinks there is something coming, it’s just a question of how severe, but dealmaking will continue through that although it might look a little different, with some companies making more countercyclical acquisitions.”

As well, private equity firms remained a major feature of dealmaking in the first quarter of 2019, largely as a result of continuing trends such as historically high levels of dry powder, and buyouts were up slightly on the previous quarter, with experts anticipating another strong M&A year for PE firms in 2019.

 

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