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Dealmakers reconsider M&A

Survey of 60 global dealmakers shows many are reconsidering M&A as they wait out the ongoing pandemic amid rising fears of a global recession.

A new report released by Baker Tilly and Mergermarket shows that dealmakers are reconsidering M&A as they wait out the pandemic amid fears of a global recession. The report, which surveys 60 global dealmakers, found that European M&A will take a hit as Covid-19 dampens global cross-border dealmaking as 73% of respondents said that they will be decreasing M&A. 

However, the region is certainly not off the agenda for dealmakers. Pre-pandemic sentiments show recognition in the market for deals and while M&A timelines may need to be extended to reflect the impact of Covid-19 on market confidence, it does serve as a benchmark from which investing could pick up once the dust of the current pandemic settles. 

Europe offers significant upside potential and investment opportunities into key sectors. 88% of respondents highlighted tech/IP as the top driver for European M&A for dealmakers seeking better and advanced innovations. Dealmakers have also been drawn towards Europe's pharma sector for its potential for growth and acquisition of IP and expertise.  

Fears of a global recession and the long-term challenges caused by the pandemic will make it difficult for investors to complete accurate, timely and effective due diligence on potential targets. However, the report found that respondents are optimistic and historical M&A trends show strong opportunity for investment across the region.

Click here to read the full report.  

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