BDO Horizons 2020 - Issue 1
30 January 2020
Quarterly global mid-market M&A review.
In this Horizons issue, we offer you a satellite view of how the M&A market is evolving – and where it appears to be heading. Certainly in Jersey we saw a busy 2019 in terms of M&A with a number of large deals.
Horizons includes expert commentary on recent trends, predictions for 2020 and forecasts of sector activity through our “heat chart” which predicts the most active sectors for company sales.
Whether you are active on the buy or sell side or just alert to the latest opportunities, Horizons will provide you with invaluable insights into where and why investment is flowing, giving you the insight you need.
- Industrials & Chemicals and Technology Media and Telecoms (“TMT”) remain the dominant sectors in 2019, representing 43% of global transactions
- Digital capability is a strong driver of deals – the acquisition of technologies or capabilities and not just by TMT groups but by all types of acquirers
- Global politics remains a major drag factor
- Economists predict that Boris Johnson's victory in the UK election will boost business confidence in the short term
- A significant issue for deal-makers in 2020 will be whether a new Free Trade Agreement will be agreed before the transition period ends at the end of 2020
While it seems unlikely that any substantial upturn is imminent in the coming year, the overall environment for M&A remains reasonably healthy – the private equity market is strong, funding is still readily available and companies are clearly looking to M&A to deliver growth, transform their businesses or acquire new capabilities.