M&A is going strong, despite some setbacks in###-###-#### The global mergers and acquisition activity of 2021 easily surpassed pre-pandemic levels to nearly match those seen just two years ago when markets were booming for Buyouts ordeals - but not so much at this point. Dealmakers around the world are expected to make $5 trillion worth M&As by year end 2022 up from 3/4th which would take them back towards higher peaks reached during brighter days before everything went south.
The United States saw its highest number since 2015 with 350 CEOs reporting their thoughts on what they think will happen within the next 12 months while also providing insights into how certain things have changed over time.
In 2021, deal valuations continued to rise and now more than 80 percent of executives say they expect these values will climb even higher in their industries by the end of###-###-#### In other words: no slowing down! Looking forward however many 34% think that for this year at least 10 percent is an attainable goal (though not necessarily expected) with a rising trend line projected through 2023; this should be encouraging news given how hard the economy has been on new business formation lately.
What factors are likely to have a big impact on merger and acquisition deals in 2022? One prediction is high valuations. For example, 61 percent of executives surveyed said that they expect this trend- together with other economic variables such as overall liquidity (56%), fierce competition for limited targets(55%) or supply chain issues like cost overruns (52%). So basically both macroeconomic and microeconomic factors will have an impact on M&A.
Private Equity Players
The prediction for private equity in 2022 is that it will continue to be a key player. Recently raised funds and dry powder make PE firms an increasingly attractive target as they seek out new acquisitions, with the prospect of higher corporate capital gains taxes expected next year probabilistic future driving some assets back onto markets during 2021's rebound from pandemic-induced contraction. Unaudited US transaction value rose over 55% last year alone - which indicates how much money these players are going towards acquiring companies worth buying up!
Accelerating Digital Transformation
As businesses have been focusing on the digital transformation of their operations, M&A has increased as a result. We predict that this trend will continue and change how deal-making operates across all sectors with an emphasis on mergers & acquisitions in particular. The need for business transformations is often seen by CEOs who want to modernize or grow at breakneck speeds; there's no better time than now!
Inflation & Liquidity
In an increasingly uncertain financial climate, many investors and corporate leaders are watching how the Federal Reserve will acknowledge inflation. The Fed has signaled that it soon plans on reducing "quantitative easing" with hikes in interest rates widely anticipated as a result which could prompt these acquirers who rely heavily upon debt financing into making transactions sooner rather than later-potentially leading potential buyers or sellers taking advantage of this window before things get too crowded/expensive again.
It is clear that CEOs are taking the ESG agenda seriously. It has been reported by many news outlets, both online and off-line since last year's multinational summit in Paris where leaders discussed how environmental concerns were top priorities for business today--and these discussions continue throughout all industries across the globe! As ESG continues to dominate CEOs’ objectives across industries, this may lead businesses towards making decisions that support sustainable practices or even divesting assets they don't need anymore based on what's best environmentally speaking - all while investors wait eagerly with open arms!