Global M&A Risk in Review report tracks trends; sees
dealmakers seek transaction insurance to help navigate
uncertainty
LONDON, June 14,
2022 /PRNewswire/ -- Aon plc (NYSE: AON), a leading
global professional services firm, and Mergermarket, a provider of
intelligence, data and analysis of global M&A, today released
the latest edition of their global M&A Risk in Review
report. The report suggests that last year's resurgence of M&A
activity can be somewhat sustained, albeit perhaps not at the
record levels seen in 2021, with dealmakers looking forward to
future transactions as they seek opportunities amid recovering
global growth and pursue digital transformation. The outlook is
particularly strong for M&A in sectors such as Technology,
Media and Telecom (TMT) and in the Asia
Pacific region.
"Even after the recent intense period of record M&A
activity, dealmakers still maintain a healthy pipeline with cash at
unprecedented levels," said Alistair
Lester, global co-CEO of M&A and Transaction Solutions
at Aon. "They are, however, faced with serious headwinds and new
forms of volatility including geopolitical uncertainty driving
inflation and interest rate increases, the acceleration of the
digital economy, a constantly changing tax landscape, sophisticated
cyber threats, heightened scrutiny of environmental, social and
governance programs and a challenging talent market that puts
pressure on people programs and integration."
Gary Blitz, global co-CEO of
M&A and Transaction Solutions at Aon, added, "In today's
environment, it is critical for both strategic and private equity
dealmakers to take a wide view to mitigate exposures and make
better decisions when approaching financial, tax, legal and other
risks. Dealmakers are encouraged to identify opportunities
throughout the deal lifecycle to secure their assets and enhance
their returns as well as examine how transactional insurance
solutions can help improve transaction structures and take certain
contingencies off the table for buyers and sellers."
From increased investment in technology and financial due
diligence to the growing prominence of Environmental, Social and
Governance (ESG) standards, trends and priorities are emerging for
investors trying to navigate uncertainties related to, among
others, geopolitics, government regulation and COVID-19
pandemic-related disruptions. M&A Risk in Review
explores these dynamics in detail, reporting on investors'
expectations for global M&A over the next 12 months, standout
sectors, the key risks they see – and how best to mitigate
them.
Additional findings from the report include:
- Seventy percent of respondents cite TMT as the most prolific
sector in terms of expected dealmaking over the next 12 months. At
the other end of the spectrum, 54 percent believe M&A will be
least prolific in the energy, mining and utilities (EMU)
space.
- Most respondents (54 percent) identify Asia Pacific (excluding Japan) as the single most attractive region
for M&A over the next 12 months. Just over a third (34 percent)
single out North America, with a
further 32 percent also identifying the region as the second most
attractive for M&A overall.
- The vast majority of respondents (90 percent) predict an
increase in scrutiny of deals for ESG implications over the next
three years; almost half (48 percent) believe the increase will be
significant.
The full report is available here.
Study Methodology
In late Q4 2021 and early Q1 2022,
Mergermarket surveyed 50 senior executives from corporate
development teams, private equity firms and investment banks. Forty
percent of respondents were based in North America, 30 percent in EMEA and 30
percent in Asia Pacific. The
survey included a combination of qualitative and quantitative
research. Results were analyzed and collated by Mergermarket. All
responses are anonymized and presented in aggregate.
Aon's M&A and Transaction Solutions is a leading
M&A advisor and innovator of solutions and services that help
secure investments, maximize deal value and drive transaction
success by solving wide-ranging issues facing dealmakers throughout
the deal lifecycle.
Solutions and services include transactional insurance
instruments such as representations and warranties or warranty and
indemnity insurance and tax and litigation insurance;
specialized due diligence, including people and human capital,
insurance, cyber and intellectual property; working
capital solutions; and digital, cyber, and
intellectual property transaction advisory capabilities.
Working across industries and covering more than 35 countries,
Aon's highly experienced teams use proprietary industry data and
insights drawn from the more than 4,000 global deals supported
annually.
About Aon
Aon plc (NYSE: AON) exists to shape
decisions for the better — to protect and enrich the lives of
people around the world. Our colleagues provide our clients in over
120 countries with advice and solutions that give them the clarity
and confidence to make better decisions to protect and grow their
business.
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Media Contacts
mediainquiries@aon.com
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stremallo@jconnelly.com
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SOURCE Aon plc