NEW YORK, June 22, 2021 /PRNewswire/ -- According to a
new M&A report from Pillsbury, not only has the United States deal market stabilized, but
investors overwhelmingly believe M&A activity is primed for
significantly more growth in the near-term. The firm found that a
whopping 92% of industry participants they surveyed expect to
undertake M&A transactions this year, with fully half planning
even larger deals.
Published in conjunction with Mergermarket, Pillsbury's
U.S. M&A: State of Affairs and Outlook Under the
Biden-Harris Administration report reflects Q1 surveys
of 150 U.S.-based corporate and private equity executives.
Respondents were asked to share their insights into how the new
U.S. presidential administration might impact M&A in
the United States.
Overall, the results point towards a significant increase in
deal volume in 2021. 59% of corporate respondents anticipate
closing between 1-3 M&A deals
over the next 12 months, and 25% expect to complete four or more.
Just 7% reported undertaking that many deals in 2020. Those on the
PE side are even more bullish. While one-quarter of private
equity-focused respondents say they completed four or more deals in
2020, 56% expect to meet or exceed that threshold in the next 12
months.
Other Key findings from the report include:
- Respondents largely agree the Biden-Harris administration will
have a positive impact on M&A: 64% of corporates and 60% of PE
firms surveyed say the administration will be either conducive or
very conducive for their dealmaking in the U.S.
- The key driver of M&A activity over the next 12 months will
be pursuing digital transformation: 24% (the largest such share) of
respondents identify this as the most significant factor, and a
further 19% cite it as their number-two concern.
- Rising regulatory scrutiny is by far the most significant risk
to respondents' dealmaking over the next 12 months. 45% identified
it as their primary concern, followed—at some distance—by
geopolitical concerns/U.S. trade policy (16%) and higher corporate
tax rates (13%).
- Both corporate and PE respondents expect most of their deals
over the next 12 months will be domestic. Corporates are far more
likely to consider cross-border transactions however, with
one-third of those respondents suggesting interest in international
deals (as opposed to only 27% for PE respondents).
"Clearly, executives expect U.S. M&A dealmaking to continue
to grow in the near term, with significant tailwinds from stimulus
measures, the low cost of capital and a strong U.S. vaccine
rollout," noted Pillsbury M&A co-leader Jon Russo.
Pillsbury advises market-leaders, innovators and financial
sponsors on M&A and Private Equity transactions in the
Technology, Life Sciences, Energy and Financial industries. With
more than 650 lawyers located in key deal markets across the U.S.,
Europe, and Asia, Pillsbury is consistently ranked
by Bloomberg, Factset, Refinitiv and
others as one of the Top 20 most active law firms for M&A, and
our lawyers have been cited
by Chambers and The Legal 500 as
preeminent advisers in the field.
About Pillsbury
Pillsbury Winthrop Shaw Pittman LLP is an international law firm
with a particular focus on the technology & life sciences,
energy, financial, and real estate & construction sectors.
Recognized as one of the most innovative law firms
by Financial Times and one of the top firms for
client service by BTI Consulting, Pillsbury and its lawyers are
highly regarded for their forward-thinking approach, their
enthusiasm for collaborating across disciplines and their
authoritative commercial awareness. To learn more,
visit www.pillsburylaw.com.
About Mergermarket
Mergermarket is a business development and market intelligence
tool designed specifically for the M&A sector and provides
proprietary intelligence and analysis on corporate strategy across
the world. With around 200 M&A
journalists talking directly to senior executives, dealmakers and
other key players in over 60 locations globally, Mergermarket
reports on the whole deal life cycle, from mapping out companies'
early stage strategic intentions to tracking deals before they
develop and providing real-time news on live events, thereby
creating a large window of opportunity. Subscribers can also mine
for trends, patterns and deal ideas using Mergermarket's
comprehensive deals database and regular data-driven editorial
analysis and commentary. Visit www.mergermarket.com to
learn more.
Additional link and information:
https://www.pillsburylaw.com/images/content/1/5/v2/153267/MM-Pillsbury-US-MA-Outlook-Under-Biden-2021-FINAL.pdf
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SOURCE Pillsbury Winthrop Shaw Pittman LLP