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Pandemic fails to dent appetite for cross-border M&A

Dealmakers have charged through the pandemic, completing transactions both at home and in foreign markets despite the challenges posed by COVID-19 and a level of disruption that has forced a rethink of the accepted M&A model.

Baker Tilly’s annual Cross-border M&A Outlook report, produced in conjunction with M&A intelligence firm Mergermarket, finds a remarkable 95% of dealmakers surveyed were able to finalize cross-border deals in the past year, despite lockdowns and limited travel between countries.

More than half of respondents (56%) say COVID-19 has increased their appetite for cross-border M&A deals, which supports the flurry of activity expected throughout the remainder of 2021.

But the report also shows dealmakers weighing the increased risks of the lingering pandemic against the need to pursue M&A as a means for growth and transformation within their organizations. 

Key highlights include:        

  • 49% say they will look for cross-border opportunities in North America and Western Europe
  • 71% say protectionism in key markets is getting worse
  • 53% say mid-market M&A will see the most deal activity in the year ahead
  • 72% say financing market conditions will improve through 2021

The full report explores current trends and challenges shaping the global market for M&A, while also exploring opportunity areas where dealmakers are likely to find value in the year ahead, including key growth markets and hot sectors. All of this is in an effort to provide a roadmap and practical insights for dealmakers to consider into 2022.

”North America and Europe have dominated interest in the past six months due to perceived stability and rapid vaccinations, but also in the availability of targets. As both Latin America and Southeast Asia reopen for international travel, we are seeing an uptick in deals, particularly in high-growth sectors like telecommunications, media and technology.”
Bill Chapman, Partner – Baker Tilly, North American Corporate Finance Lead – Baker Tilly International

Transaction advisory services are offered through Baker Tilly Capital, LLC, a registered broker-dealer, Member FINRA and SIPC. Baker Tilly Capital, LLC is a wholly owned subsidiary of Baker Tilly US, LLP.

This article was originally published by Baker Tilly International.

For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.

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