2022 update: Corporate portfolio reviews, private equity dry powder and special purpose acquisition company IPOs will continue to drive robust M&A activity ‒ despite mounting headwind
After a year of record mergers and acquisitions activity, the question is what comes next. This, the 2022 edition of our M&A Industry Insights, continues our successful series of surveys of the global M&A market. In early 2022 we see many of the trends mapped and predicted in previous editions intact. This suggests that deals activity will remain robust in the coming months, with intense competition among corporates, private equity (PE) and SPACs (special purpose acquisition companies).
There are, however, some growing signs of headwinds. These include inflation, interest rates and supply chain issues ‒ plus regulatory scrutiny of foreign direct investment and potential antitrust cases.
Some key takeaways for Switzerland:
Learn more about trends in Switzerland and our expectations in the blogpost.
“ESG will remain an important factor in assessing M&A potential. But dealmakers should also be keeping a close eye on inflation, interest rates, supply chain and regulatory issues.”
“After a record year for M&A, everyone’s asking what’s next? Dealmaking will likely remain robust in 2022, with fierce competition among corporate, PE and SPACs, but it’s feasible that the top may come off the market, given increasing macroeconomic and regulatory headwinds.”
Learn more about further key trends driving M&A activity globally and potential investment hotspots for 2022. Check out our global industry-specific takeaways below.
What about the situation in Switzerland? In the next few weeks our industry experts will be sharing their points of view on trends in Switzerland and our expectations ‒ so watch this space.
“In light of changing customer preferences and consumer companies looking to reshape their portfolios and business models, we expect a very active Swiss retail and consumer M&A market for the remainder of 2022.”
“Everything points to continued lively dealmaking across the technology, media and telecommunications sector, although rising interest rates, sustained high multiples and tighter regulation are potential headwinds that should be kept an eye on.”
“Financial services companies, regardless of their size and sub-industry, have plenty of reasons to keep an eye on M&A as a core element of their growth and transformation strategy. Therefore I see M&A activity continuing to thrive in Switzerland and abroad.”
“Many factors point to a continuation of the lively dealmaking we’ve seen in the health industries. Pharma companies have a massive amount of fire power and will need to continue to fill their pipeline with promising drug candidates and technology.”
“Recent supply chain disruptions and fears of an intensifying trade war are causing many European OEMs to onshore their supplier base, making European industrial suppliers attractive takeover targets again.”
“Decarbonisation and other ESG-related objectives will continue to fuel the M&A activity in the energy sector – with some of the most important developments driven by Europe. But with strong competition for rather scarce investment opportunities, I expect buyers and sellers to be more structured, creative and flexible in the way they approach deals.”