We explore five themes which will impact M&A in 2022.
M&A deals reached a record-breaking US$5.1 trillion last year and that looks set to continue in 2022 despite continued uncertainty around COVID-19. Clifford Chance experts examine the global shifts that will influence the market in the year ahead.
Guy Norman, Global Head of Corporate, says: "Deal-making hit new highs in 2021 and we expect the strong deal pipeline to continue into the new year as businesses learn to live with the pandemic and adjust and grow in its wake.
M&A in 2022 will continue to be shaped by the accelerating transformation of businesses by technology, but this technological revolution will meet stronger regulatory headwinds as governments seek to shape and control its impact.
A plentiful supply of cheap debt and private equity funding should fuel another year of intense deal-making, but we will also see two newer forces shaping the M&A landscape: businesses' need to respond to the ongoing disruption of their pandemic-stricken supply chains and shareholder, and calls by activists and other stakeholders for accelerated green and governance change that are driving M&A strategy across a broad range of industries."
Erik O'Connor, Senior Associate in our London Corporate practice, adds: "As we emerge from two years of the pandemic, some of the uncertainties affecting valuations and risk appetite, as well as the capacity of businesses to focus on strategic M&A, appear to be fading, but increased antitrust scrutiny and a potential market correction may place strain on deal timing and deliverability."