PR Advisors Global & Regional League Tables

19 January 2021

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  • Globally, Joele Frank Wilkinson Brimmer Katcher took the #1 spot by deal value, while Sard Verbinnen & Co moved from first place in 2019 to second place in 2020.  Rounding out the top three is Brunswick Group.
  • Mark Druskoff, Data-Driven Content Coordinator (North America) at Mergermarket commented: “Even as 2020 recedes into the distance, its impacts continue to shape the market. Corporates and sponsors alike have spent their way through the crisis in the second half of 2020, with unprecedented levels of deal making in the final few months of the year.”
 

Value over volume: Italian M&A and PE activity in 2020

07 January 2021

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Mergermarket and Unquote are pleased to present Value over volume: Italian M&A and PE activity in 2020, published in association with Gatti Pavesi Bianchi Ludovici. This report provides invaluable insights into M&A and private equity (PE) activity in Italy across 2020, focusing on the impacts of Covid-19 on dealmaking in the region.         

            

Highlights from the report include:

  • M&A activity dominated by deals at the top end of the marketItalian M&A value witnessed a YoY rise across Q1-Q3 2020, even as volume dropped, with 318 deals worth €29.1bn representing a 32% fall by volume, but a 11% increase by value. The rise in deal value is largely due to an increase in higher value deals. There were seven €1bn+ deals announced in the first nine months of the year, including the largest deal of the year so far: The €7.7bn acquisition of Fibercop by a consortium led by Kohlberg Kravis Roberts and Telecom Italia in the TMT space.
  • PE value shoots up, while volume falls. Following much the same pattern as M&A activity as a whole, PE deal activity was also dominated by large deals. 88 PE deals were struck between Q1-Q3 – a 25% drop by volume – while value rose by 141% to €15.6bn compared to the same period last year. This is higher than 2019’s overall PE value which reached €11.8bn.
  • The consumer sector looks set to return to the fore as better management of the pandemic sparks anticipation of a rebound. The outlook for 2021 is far more promising than it was six months ago with dealmaking activity in Q3 allowing for cautious optimism, particularly for the consumer sector. Between April and October, Mergermarket published 243 ‘companies for sale’ stories in Italy, with the consumer sector accounting for 87 of these. The next most popular sectors were TMT and industrials and chemicals, accounting for 36 stories each.

2020 Global M&A Report with legal league tables

05 January 2021

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Mergermarket, the leading provider of M&A data and intelligence, released its 2020 global report, which revealed that USD 2.2tn of overall M&A activity in 2H20 represented the highest half-year figure on Mergermarket record. Meanwhile, the USD 1.2tn announced in the final quarter was the highest quarterly value since 2Q07.
 
 
  • In contrast, M&A activity in the first half was subdued (USD 971.0bn), leading to an overall 6.6% year-on-year decline by value. Amid the social and economic disruptions caused by COVID-19, deal count was down 15.5%, from 20,767 to 17,545. While a few sectors fell, others rose, making it a bumpy ride for deal professionals.
 
  • Technology, Media, and Telecommunications (TMT) climbed 56.8% by value compared to the previous year, from USD 543.4bn to USD 851.8bn, equivalent to more than a quarter of overall global activity. Volume, on the other hand, declined slightly to 3,943 deals.
 
  • The next best performing sector was Energy, Mining & Utilities (EMU), which also saw a 3.8% increase by value to USD 477.7bn, but a 13.8% decline in deal count to 1,326. Industrials & Chemicals rounds out the three best performing sectors in 2020, even with a 27.1% drop from the previous year - from 3,791 to 3,023 transactions.
 
  • Although M&A markets went into stasis, debt and equity capital markets came alive. In addition to a significant volume of high yield bond issuances and secondary equity offerings, special purpose acquisition companies (SPAC) became the phenom of 2H20, particularly in the US. A total of 255 SPACs were launched in 2020, raising USD 83.1 bn, compared to USD 15.5bn across 73 listings in 2019, according to Dealogic data (Mergermarket and Dealogic are owned by ION Group).
 
 
Mark Druskoff, Data-Driven Content Coordinator (North America) at Mergermarket commented: “Even as 2020 recedes into the distance, its impacts continue to shape the market. Corporates and sponsors alike have spent their way through the crisis in the second half of 2020, with unprecedented levels of deal making in the final few months of the year.”
 

2020 Global M&A Report with financial league tables

05 January 2021

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Mergermarket, the leading provider of M&A data and intelligence, released its 2020 global report, which revealed that USD 2.2tn of overall M&A activity in 2H20 represented the highest half-year figure on Mergermarket record. Meanwhile, the USD 1.2tn announced in the final quarter was the highest quarterly value since 2Q07.
 
 
  • In contrast, M&A activity in the first half was subdued (USD 971.0bn), leading to an overall 6.6% year-on-year decline by value. Amid the social and economic disruptions caused by COVID-19, deal count was down 15.5%, from 20,767 to 17,545. While a few sectors fell, others rose, making it a bumpy ride for deal professionals.
 
  • Technology, Media, and Telecommunications (TMT) climbed 56.8% by value compared to the previous year, from USD 543.4bn to USD 851.8bn, equivalent to more than a quarter of overall global activity. Volume, on the other hand, declined slightly to 3,943 deals.
 
  • The next best performing sector was Energy, Mining & Utilities (EMU), which also saw a 3.8% increase by value to USD 477.7bn, but a 13.8% decline in deal count to 1,326. Industrials & Chemicals rounds out the three best performing sectors in 2020, even with a 27.1% drop from the previous year - from 3,791 to 3,023 transactions.
 
  • Although M&A markets went into stasis, debt and equity capital markets came alive. In addition to a significant volume of high yield bond issuances and secondary equity offerings, special purpose acquisition companies (SPAC) became the phenom of 2H20, particularly in the US. A total of 255 SPACs were launched in 2020, raising USD 83.1 bn, compared to USD 15.5bn across 73 listings in 2019, according to Dealogic data (Mergermarket and Dealogic are owned by ION Group).
 
 
Mark Druskoff, Data-Driven Content Coordinator (North America) at Mergermarket commented: “Even as 2020 recedes into the distance, its impacts continue to shape the market. Corporates and sponsors alike have spent their way through the crisis in the second half of 2020, with unprecedented levels of deal making in the final few months of the year.”
 

High-Tech M&A Defies The Odds

08 December 2020

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Despite disruption and economic upheaval, the appetite for deals in the high-tech & software sector has not waned during the pandemic. Private equity and corporate buyers expect deal activity to remain strong: 70% said they plan to acquire as many as two software/high-tech companies over the next 24 months, and 27% intend to make three or four acquisitions. These are among the principal findings in this new report by West Monroe and Mergermarket.

The report explores the demand, strategy, diligence, and post-close process for buyers of high-tech & software companies. As a basis for the report, West Monroe and Mergermarket surveyed 100 private equity and corporate/strategic buyers during the third quarter of 2020.

Key findings of the study include:

  • Global deal value for the technology, media, and telecommunications (TMT) industry increased 21% through the third quarter of 2020, compared to the same period a year ago. Although 60% of survey respondents said they postponed or canceled plans to make a software or technology acquisition as a result of the COVID-19 pandemic, 55% said they expect their deal appetite to either increase or stay the same over the next 24 months.
  • Private equity investors in high-tech & software have primarily focused on consolidation or scaling up to increase competitiveness (74%) and transformation, for example through new intellectual property (66%). Corporate buyers are different: Their primary objectives for recent high-tech and software acquisitions were incorporating a specific functionality or intellectual property into an organization to enable product differentiation (72%) and acquiring a new customer base (64%).
  • Subscription revenue is a priority, particularly for private equity; 40% of private equity respondents said that 50% to 70% of their tech portfolio markets goods or services to customers on a subscription basis. By contrast, half of corporate buyers surveyed report that less than 50% of their revenue comes from subscriptions.

Register for the Global M&A Conversation

09 February 2021 - 08:30 am UTC


Join this virtual event for a decisive outlook on M&A in 2021

The Global M&A Conversation is a major virtual event to connect acquirers, investors, advisors and lenders around the deal drivers for 2021.

Kickstart your deal pipeline with expert perspectives from top speakers in the global M&A community about the themes that will define the market in the year ahead.

The agenda will address four core themes to market activity in 2021:

Innovation:

Many industries were already facing huge changes. The pandemic was the catalyst to accelerate that transformation, causing companies to adapt their footprint and futureproof strategy. The trend for technology M&A seen in recent years continued in 2020, with the reliance upon the digital economy shaping consumer habits for years to come.

Globalisation:

Global supply chain disruption was highlighted in the onset of the pandemic. The disruption caused to manufacturing supply chains prompted a re-think of where future capital investment should be located. Logistics businesses have been an essential component to the at-home economy. Governments retrenched to safeguard domestic employment, with more stringent reviews of foreign investment coming.

Sustainability:

The UK will host the 26th UN Climate Change Conference of the Parties in November 2021. Dozens of world leaders will attend to in the most important round of talks since the global Paris Agreement to tackle climate change was secured in 2015. Sustainability has climbed higher on the agendas of boards and management creating a sharpened focus on sustainability in M&A as it is increasingly seen as a question of value-generating business development.

Private capital:

The growth seen in private equity assets has been indicative of deal flow in recent years with sponsors able to raise and deploy capital into opportunities at a record rate. Expectations are for a more active role for private equity in the next M&A cycle. The pursuit of take-privates looks set to continue. Whether SPACs will arrive in Europe and redefine the IPO exit. Abundant liquidity in debt markets supplemented with private credit. Outlook for infrastructure M&A is positive especially around digital and logistics assets.

 
Taking place online, registration is free and open to all practitioners within the M&A community.
 

Aditya Birla Group: M&A Footprint

17 November 2020

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Aditya Birla Group’s (AB Group) strategy since 2005 has been to focus on the B2B Industrial sector. Prior to 2005, AB Group’s M&A footprint was majorly in the Energy and Mining sector, but over the last 15 years, it has tried to dabble in industries such as telecom and technology, with a surge in high value acquisitions post 2016.

This infographic provides an overview of AB Group's activity in the last 3 years, and what we expect to happen next.

Portugal: Trend Report

27 November 2020

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At the beginning of 2020, the signs for M&A in Portugal were positive – there was a strong pipeline of deals from both strategic and private equity players and expectations were high. Then the pandemic hit. The outbreak reduced activity as deals were delayed or cancelled since sellers considered that they would be harmed by the market conditions. Meanwhile, buyers had to factor in uncertainty and expensive financing in the purchase price and deal terms.
 
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Expanding Horizons 2020

19 November 2020

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Mergermarket is pleased to present Expanding Horizons: Offshore perspectives on investment into New Zealand during the Covid-19 recovery, published in association with Simpson Grierson.

This report explores feedback from offshore investors who have invested in New Zealand (NZ) in the last 5 years, looking at how Covid-19 has changed their plans and sentiment towards the NZ market, and their views on market trends, challenges, and opportunity sectors.

The findings show that while Covid-19 has delayed many offshore investors’ M&A plans for NZ, overall investor sentiment has remained positive. NZ’s ability to control Covid-19 has enabled the domestic economy to operate more or less normally, and M&A activity is expected to increase significantly following the eventual safe reopening of travel borders (either partially or fully).  

Key findings include:         

  • Strong M&A intentions60% of respondents intend to invest in New Zealand in the next two years and another 29% are considering an investment within the next 12 months.
  • Covid has caused delays48% of respondents are delaying investments here and 23% say their pre-Covid intended investments have been suspended or abandoned.
  • Reopening the borders60% say a partial reopening of NZ’s borders would make them more likely to invest and 75% say a full border reopening would likewise entice them to invest.
  • Opportunity sectors71% say technology, media and telecommunications is NZ’s most attractive sector, followed by pharma, biotech and medical (60%), and consumer 51%).
  • Top fundamentalsRespondents say NZ’s top fundamentals include: less competition for targets, political and regulatory stability, access to new and advanced tech, and fair valuations.

Outlook M&A Italy and United States. Working Group M&A AmCham Italy

03 November 2020

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Mergermarket is pleased to present “ Outlook M&A Italy and United States working group M&A AMCham Italy 2020 in association with American Chamber of Commerce in Italy.

According to the “M&A outlook: Growth and financial trends between Italy and the USA” of Amcham Italy, the Covid-19 pandemic has had considerable repercussions on the Italian economy, but the country retains its status of attractive pole for US investors. The document offers a careful analysis of the market for transatlantic M&A according to economic-financial, legal, and strategic perspectives, to provide an overview and the sentiment of US investors on the Italian System and the renewed attractiveness of the US market as a key element for Italian companies that aim to expand at the global level.

Key highlights include: 

  •  Research that shows despite the decline recorded in the first half of 2020 - decrease in terms of reduction in value (c.-30% in Italy and c.-50% in the United States) and volumes (c.-35% in Italy and c.-30% in the United States) 
  • The performance of Italy/USA operations over the last five years (2015-2019) has remained stable, representing a significant share of total transactions, which were mostly from the US to Italy (67% of the total).
  • These are acquisitions made by strategic or financial buyers, with a strong focus on the sectors of excellence of the country: industrial (30% of total agreements), TMT (27%), and consumer (20%).

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