PB: Global M&A hangs tough

In research published this week, PitchBook wrote:

Global M&A remains strong despite geopolitical conflicts and bifurcated for much of Q1 2022, with previously negotiated deals closing on time while announced activity diminished due to the uncertainty created by Russia’s invasion of Ukraine, according to our latest Global M&A report. 

Final deal counts for the quarter fell compared to the fervent activity seen in the back half of 2021 but were healthy compared to the past five years.

Key takeaways

– As much of the globe pushes beyond the worst effects of the COVID-19 pandemic, consumer spending has been dampened as housing and transportation costs lift.

– Higher-growth companies have lagged as have tech-heavy indexes, including NASDAQ. Going forward, analysts expect deal professionals will be walking a tight rope.

– Capital intensive industries—including energy and industrials—appear poised for prolonged growth, despite the higher raw materials costs.

– PE continues to account for a swelling proportion of deal activity, including a significant percentage of the largest deals. Eight of the 20 largest deals to close in the quarter were bought by financial sponsors. 

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(To download the full report, please click here.)