Bain & Company recently released their 2020 M&A report, which included a piece called “2020 Year in Review: The Surprising Resilience of M&A.”A few of the key points from the article are as follows:
- Despite deal activity grinding to a halt in the early spring, more than 28,500 deals were announced by corporate acquirers in 2020 for a total value of around $2.8 trillion.
- Acquiring new capabilities for the digital economy, increased local or regional deals, and additional scrutiny from governments and regulators in the M&A process were some of the major M&A themes during 2020.
- 75% of the M&A professionals who were surveyed from Asia-Pacific, Europe, Middle East, and Africa expect an increased focus on domestic deals going forward. Among US participants, 44% expect to focus on more regional deals, while 40% expect no changes from previous years.
- 2020 saw deal values rise by more than 30% in the third and fourth quarter as deal multiples held strong and deal financing remained available thanks to government stimulus.
- The survey respondents are expecting M&A activity to contribute to 45% of their future growth compared to just 30% over the previous three years.
- The M&A process rapidly become more digitized, as buyers were forced to do virtual due diligence, deal closings, and integrations.
Read the full article here: https://www.bain.com/insights/2020-year-in-review-the-surprising-resilience-m-and-a-report-2021/
