{"id":27629,"date":"2020-12-09T10:35:04","date_gmt":"2020-12-09T10:35:04","guid":{"rendered":"https:\/\/www.ceo-na.com\/?p=27629"},"modified":"2020-12-09T16:51:39","modified_gmt":"2020-12-09T16:51:39","slug":"global-ma-industry-trends","status":"publish","type":"post","link":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/business\/innovation-business\/global-ma-industry-trends\/","title":{"rendered":"Global M&A industry trends"},"content":{"rendered":"

According to PwC, the\u00a0mergers and acquisitions trends are showing signs of a rebound, and we can expect a jump in deals by year-end.<\/span><\/p>\n

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Dealmakers are accustomed to facing uncertainty, but the scale and speed of COVID-19 sent shockwaves through the global economy and the mergers and acquisitions (M&A) market. We adapted to the challenges and the changes in ways of living and working. As business went largely virtual, so did deals.<\/span><\/p>\n

The global fiscal stimulus packages provided by governments to counter the economic downturn have now topped US$10 trillion<\/span> and triggered strong rebounds across practically every financial market.<\/span><\/p>\n

Markets recover as investor confidence returns<\/b><\/p>\n

Most industries and regions are now seeing lower share-price volatility than in March and April, and the upward trend of major indices suggests investor confidence is returning. While several major indices are now only slightly below pre-COVID-19 levels, others have surpassed previous records. A comparison of the total shareholder return by industry of the S&P 500, FTSE 100 and Shanghai Stock Exchange for the first six months of 2020 shows how performance has varied widely, both by region and by industry.<\/span><\/p>\n

The Nasdaq Composite fell close to 25% between 1 January 2020 and its lowest point on 23 March 2020. However, demonstrating the\u00a0resilience of the technology sector, the index went on to reach successive all-time highs, ending June at 12% above where it started at the beginning of the year. While the recovery in valuations may hinder some take-private deals, this confidence bodes well for other forms of dealmaking.<\/span><\/p>\n

M&A looks set to rebound ahead of the global economy<\/b><\/p>\n

The apparent disconnect between the economy and soaring financial indices has led many to question the sustainability of the rally; we believe M&A activity can lend credibility to the longer term sustainability with well thought-through deal valuations based on robust strategic analysis. Dealmakers will price the relative risks and opportunities within each industry and successful transactions will demonstrate greater confidence in the market.<\/span><\/p>\n

Companies that approach M&A as part of a long-term strategic plan will be in a better position to capitalise on the opportunities presented in this challenging climate. In addition, history shows that those who engage in M&A early in periods of economic uncertainty see higher average returns than those who wait.<\/span><\/p>\n

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Several important indicators are flashing green for a jump-start in new M&A activity:<\/strong><\/p>\n