Will 2022 be another exceptional year for the US M&A market?

Can the momentum in M&A continue amid intense economic uncertainty?

Video on-demand free to view until 21st May | #FTDigitalDialogues

Presented by

In Partnership with

Senior Industry Leaders Will Share Their Insights

Last year was an outstanding year for M&A transactions globally and the US was the hottest market. Around $5.9 trillion of M&A deals took place globally in 2021 and the US market accounted for 45% of the deals.

US dealmakers were expecting 2022 to be another exceptional year but the Ukraine crisis could now dampen the market. It is leading to heightened economic uncertainty and skyrocketing oil and natural gas prices. Inflationary pressures are mounting. The West's security situation has also deteriorated markedly. Will American companies and investors want to continue with M&A transactions in these circumstances or could they enter a 'wait and see' mode?

This digital dialogue presented by the Financial Times, in partnership with Datasite, provided a key forward-looking market outlook for the US M&A market and explored the risks and opportunities that this new dealmaking environment poses.

See full overview

Key Takeaways

Ukraine Crisis

North American M&A activity is down compared to the same period last year, due to the Ukraine crisis and new anti-competitive regulations. HoweverNorth-American deal flow is likely to dominate global deal making this year due to European M&A activity being weighed down further by the Ukraine crisis.

Funding Costs

A rise in funding costs is also impacting deal flow, however there is still strong demand for tech companies. Private equity firms also have a lot of 'dry powder' and have continued to be strong acquirers. S&P 500 companies also have an abundance of capital and will not hesitate to do a deal if it seems right.

Supply Chain Issues

Supply chain issues continue to be one of the biggest drivers of M&A activity. Corporate resilience is now a key concern and greater emphasis is being placed on more localised supply chains. Global companies are regionalising and acquiring other firms on their supply chain in their regions. The trend started with the Covid-19 pandemic but the Ukraine crisis has accelerated it.

Economic Uncertainty

Corporates may delay deals this year due to mounting economic uncertainty. The probability of stagflation or recession is 35% and a lack of visibility about future business volumes is leading corporates to put some deals on hold.

SPACs

The boom in special purpose acquisition companies (SPACs) is over. Companies wanting to go public were attracted to the SPAC route rather than undertaking standalone IPO last year but the capital available for SPACs is down this year. Many SPACs may liquidate this year.

World-Class Business Leaders and Speakers

Marc-Anthony Hourihan

Managing Director and Global Co-Head of Mergers & Acquisitions

UBS

Cary Kochman

Co-Head of Global M&A Group and Chairman of the Chicago Office

Citi

Lande Spottswood

Partner - Mergers & Acquisitions

Vinson & Elkins LLP

Mark Williams

Chief Revenue Officer, Americas

Datasite

Nikou Asgari

U.S. M&A reporter

Financial Times

External Considerations

What extra due diligence is needed as a result of the Ukraine crisis, macro policy changes and growing ESG concerns?

M&A Trends

Why are there so many M&A transactions among young public companies?

See the agenda

Join Us On 21 April

FT Live Digital Dialogues - fully digital one hour event experiences delivering maximum engagement. Live webinars provide unique opportunities to engage global senior audiences. All access, digital passes include access to all the live sessions PLUS all sessions on demand for 30 days. Join the conversation.