Mergers and acquisitions (M&A) activity is always changing and evolving, and keeping up with the latest trends can be crucial for businesses looking to make strategic moves in the coming year. Here are some of the top M&A trends to watch out for in the next 12 months:
- Rise in cross-border M&A: With the global economy increasingly interconnected, we are likely to see a continued rise in cross-border M&A activity. This can open up new opportunities for businesses looking to expand into new markets and diversify their revenue streams.
- Increased focus on technology: The ongoing digital revolution has led to an increased focus on technology and its role in M&A. This can include the acquisition of companies with cutting-edge technology or the integration of technology into existing business operations to drive efficiency and growth.
- Growing interest in sustainability: As awareness of the importance of sustainability and environmental, social and governance (ESG) issues continues to grow, we are likely to see more M&A deals focused on companies with strong ESG practices and records.
- Private equity activity: Private equity firms have been active in the M&A space for some time, but this trend is likely to continue as they look for new opportunities to invest.
- Impact of COVID-19: The ongoing pandemic has had a significant impact on M&A activity, with many deals being put on hold or re-evaluated. As the world continues to navigate the effects of COVID-19, it will be important to keep an eye on how this continues to shape the M&A landscape.
- Remote working and virtual M&A: With the shift to remote work, we’re likely to see more virtual M&A activities, including virtual due diligence, virtual data rooms, and virtual negotiations. This would open up more opportunities for companies to make deals outside their immediate location and enable them to access a larger pool of potential targets.
As always, staying ahead of the curve and being aware of the latest M&A trends can be crucial for businesses looking to make strategic moves in the coming year. By keeping an eye on these trends, businesses can position themselves to take advantage of new opportunities and navigate the ever-changing M&A landscape.