In the first half of 2019 (H1 2019), global merger and acquisition (M&A) value reached $1.86 trillion, increasing 21 per cent from H2 2018 ($1.5 trillion). Although this was 8 per cent less than in H1 2018 ($2 trillion in announced deals), it was the second-highest half year on record.
Likewise, while M&A volumes have slowed – declining 12 per cent from H1 to H2 2019, reaching some of the lowest levels since 2015 – if viewed within its historical context, dealmaking remains robust and could continue to be in the year ahead.
To take the pulse of the current M&A market and get a sense of executive and investor intentions for 2019 and 2020, Baker Tilly International conducted research with Mergermarket, interviewing 150 dealmakers from across the globe. Some of the key findings include:
- 54 per cent predict an increase in M&A activity in 2020
- 71 per cent expect to increase their cross-border M&A spend in 2020 despite heightened geopolitical risks, rising protectionism and whispers of a recession
- 35 per cent feel cross-border deals are risks worth taking
- The middle-market is expected to account for 67 per cent of deal volume in 2020
- The U.S. is the top market where dealmakers will invest in the next one to two years
The full report explores current trends and challenges shaping the global market for M&A, while also exploring opportunity areas where dealmakers are likely to find value in the year ahead, including key growth markets and hot sectors. All this in an effort to provide a roadmap and practical insights for dealmakers to consider in 2020 and beyond.
This article was originally published by Baker Tilly International.
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