Welcome to the third edition of Horizons in 2021, in which BDO M&A professionals around the world present their insights on mid-market deal activity and trends.
The most striking trend is the growth and growth of private equity led M&A since the onset of the pandemic. Deal volumes are back to pre-pandemic levels and aggregate deal value continues to grow with record amounts of cash being deployed. Private equity in particular has continued to increase its amount of investment and is running at around 30% of all deal value which is higher than it has ever been.
In the UK and Ireland, the report shows:
- Strong rebound in mid-market M&A activity in Q4 2020 and Q1 2021
- Q2 2021 showed an overall decline in the volume and value of mid-market M&A transactions across most sectors in comparison to the previous two quarters
- Strong levels of cross-border M&A activity recorded across sectors
The UK & Ireland’s M&A outlook for the second half of 2021 remains positive. Corporations hold significant levels of cash and can still access healthy equity markets and inexpensive debt. Looking ahead, the BDO Heat Chart predicts an active market in the UK & Ireland with 440 rumoured deals.
As a global organisation with operations in most countries, we have been able to see how COVID-19 has affected sectors and regions differently by keeping in regular touch with our colleagues. This issue brings you up to date commentary on deal activity levels, active sectors and regions and provides in-depth analysis on potential activity in the next few months.
Download the full report for more information on markets across the globe.
Content adapted from BDO Global
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