M&a Activity

M&A Activity

Mergers and Acquisitions activity raises uncertainties among business personalities every unfolding year. This is projected to continue for the next few years in the United States. Though predictions have since taken shape, other factors like the Trump presidency brings further ambiguity into play such as a change in policies, key appointments yet to unravel in government among others. Therefore, M&A activity may remand on hold in some sectors for some time this year in the United States. However, M&A activity in the tech sector is projected to rise to greater levels of up to $415 billion in the next year. With the recent advent of disruptive cloud, Big Data analytics, and social technologies, there is the possibility of rising levels of M&A activity not only in the United States but also internationally. Firms remained cautious in the first quarter of 2017 across all sectors, however, it will rise later in the year and more so in the next several years.

Globally, M&A activity has recorded a rather declining growth over the last few years across major sectors of the global economy. This may continue to play out for the next few years. However, surprises cannot be ruled out in the process since major actors in most cases find a way to carry out major deals. Structurally and economically, most activity in Europe certainly remain absorbed by own concerns, but major dealmakers could still broker some deals. According to Global Transactions Forecast’s annual report, M&A activity value in 2016 fell by 17 percent and further predicted a continued downward activity in 2017 and pick up later in 2018 (Adams, 2016). It further states that the tech sector to be the key driver of global deals in 2018. Therefore, industry shocks, the emergence of cloud disruptions, and political unfolding both in the United States and globally will aggregate merger waves to adapt to the new environment.

Reference

Global Transactions Forecast: From Apprehension to Appetite | Insight | Baker McKenzie. (2017). Bakermckenzie.com. Retrieved 25 July 2017, from http://www.bakermckenzie.com/en/insight/publications/2017/01/global-transactions-forecast/

 Adams, B. (2016). 2016 Surprises, 2017 Predictions for M&A. Insight.factset.com. Retrieved 25 July 2017, from https://insight.factset.com/year-end-predictions-and-surprises-for-the-ma-space