At the same time as the global economy shows clear signs of forceful recovery, the Q1 numbers indicate that the M&A deal count is equally on an optimistic rise.
In general, private equity buyers are wise to seek opportunities globally, but during the last six months particular interest has been noticed in the UK market and throughout Europe with series of investments being made.
In this post, we will take a closer look at recent M&A activities both on regional and sectoral levels.
Regional developments
Although the US has lately seen several significant deals announced, and it is believed that the trend will continue in the same direction, Europe has not quite been able to pick up the same pace just yet even if it has gotten an enthusiastic start to Q1.
According to experts, the fast rate at which the US was able to mobilize their vaccine rollout managed to tranquilized companies and PE buyers at the same time as it created a healthy climate for investment. The Biden administration and the US Congress, now Democratic-controlled, also have investors watching with a close eye as new legislative and administrative actions emerge. Winds of change are blowing through North America, and you will be wise to keep up with the following developments.
Meanwhile, in Europe, the focus among companies seems to lie on becoming regional champions through a wave of broader and domestic consolidation supported by the European authorities. With the authorities involved on such a high level, keeping up to date with the latest regulatory developments will be crucial for the success of many deals. The UK government has for instance taken actions to block cross-border takeovers of UK-based companies to protect a list of sensitive industries.
Considering that many European companies see M&A as a vital part of their growth journey, we can surely count on Q2-Q4 to bring us exciting news!
Sectorial developments
Healthcare
Materials & Resources
Information Technology
The IT sector on the other hand has an essential position in global M&A and continues to grow in importance. It turns out semiconductors have landed a starring role facing fast-growing demands as the Internet of Things (IoT) is developing at a fast rate. The involvement of private equity buyers in the IT sector reached a new high during Q1 as it accounted for about one-third of the tech acquisitions at a global level, something worth keeping track of.
B2B (Business to business)
This is a sector where Europe exceeded the US with a larger share of M&A during Q1, a respectable improvement from Q1 2020. The shift among consumers and businesses in the way they consume and manage content has left room for streaming companies to excel. These rely greatly on consumer data and analytics for insights, scaling their business, profitability, and has opened for new M&A deals. Media & information is anticipated to grow as companies strive to expand their customer offer.
These are just a few of the sectors that move the world economy and hence M&A. These transactions that can be time-consuming, delicate, and difficult to successfully finalize without the correct knowledge and professional support. There are many aspects to consider, and we would not count on you to be on top of them all. Our specialists on the other hand have a long and successful trajectory behind them, making the Greca team a valuable partner for the next important steps your company is about to take.
If you are ready – let’s talk!
