Market Spotlight: M&A Financing

01 March 2018

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Rising investor confidence and positive economic forecasts have set the stage for an increase in M&A activity in 2018. With uncertainty over US tax reforms no longer looming, low interest rates and low inflation have helped create a potentially ideal environment for dealmaking. But which financing structures will fuel this growth? And which sectors will produce the most attractive targets?

To find out what financing trends lie ahead for strategic buyers and PE in 2018, Mergermarket and Donnelley Financial Solutions interviewed leading dealmakers for their insights.

Key findings include:

  • 76% of respondents believe financing for M&A deals will become more available over the next 12 months.
  • 92% of dealmakers say that cash will be one of the top two financing methods among corporate buyers for 2018, while 44% believe stock-for-stock will be a top option.
  • 84% of respondents chose technology and telecoms as the sector where financing will be most available.