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 year was expected to be an excellent year for M&A deals due to the strong post-Covid economic recovery. Cash-rich companies – fuelled by low borrowing costs – were looking to expand rapidly during the rebound. Even as the Biden administration targetted greater scrutiny of alleged anti-competitive activity, the breakneck pace of dealmaking appeared set to last. Multiples hit record highs as companies entered new markets. Tech assets, in particular, decoupled from the broader M&A market, with median enterprise value/Ebitda multiples at 25 times. Environmental, social and corporate governance (ESG) concerns have risen to the top of corporate agendas. Increasingly, acquirers must find ways of valuing their targets’ ESG performance. However, greater economic uncertainty in the wake of the Ukraine crisis could now override all other considerations and take centre stage in C-suite and investors' minds. 

The Financial Times in partnership with Datasite, will provide a key forward-looking market outlook for the US M&A market and explore the risks and opportunities that this new dealmaking environment poses. 

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