EMEA 2022 M&A Outlook: What will drive deals?
M&A hit all-time highs in EMEA in 2021 and it seems activity is unlikely to slow in 2022. Deal value in the region for the year to end-Q3 2021 came in at €980bn, 100% up on the same period last year, with deal volumes climbing 49% to 7,545. Will the pace and level of M&A activity continue? The forecast looks positive so far for 2022.
Dealmaking speculation remains highly elevated – especially in sectors where M&A has been strongest during the COVID-19 pandemic. It comes as no huge surprise that TMT was one of the big winners in 2021 and is expected to continue to attract huge attention in 2022. But the consumer and I&C sectors – which along with TMT were the three busiest areas of the market, by value, in Q3 2021 – as well as eastern EMEA could all play a strong role this year. And it may be worth keeping an eye on business services – although much will depend on the spread of the Omicron variant.
Deal makers or deal breakers?
Economies are predicted to expand in the region, provided further lockdowns aren’t in order. And while not exactly positive in nature, the rise in distressed deals is expected to continue. Combine these factors with the TMT boom, ESG-related divestitures, and the high levels of PE dry powder and M&A dealmakers could be set for a very good year.To learn more about the factors and forces expected to play a role in shaping the market in 2022, read the full report.