The DealMaker Meter - Summer 2022, The Resiliency of Dealmaking, Spotlights Strategic Change from Growth to Profitability and Due Diligence
CHICAGO and NEW YORK, June 23, 2022 /PRNewswire/ -- Despite global inflation, the war in Ukraine, and the threat of a recession and increased regulations, a new survey from Donnelley Financial Solutions (NYSE: DFIN), a leading risk and compliance company, predicts strong M&A activity for the next six months. Comprised of a panel of key industry experts, including investment bankers, private equity professionals and attorneys, The DealMaker Meter - Summer 2022, The Resiliency of Dealmaking* report, is designed to help executives understand the drivers of the global economy and make strategic decisions about potential mergers and acquisitions.
According to the report, 73 percent of those surveyed said the record-breaking trends of 2020 and 2021 are likely to continue in 2022. The report also suggests a change in strategy, with 88 percent of respondents indicating that they are prioritizing profitability over growth. Based on that approach, 58 percent believe this will spur larger deals from established organizations; a slightly smaller number (56 percent) expect a shift toward smaller, strategic deals.
Other important insights, include:
- Go privates predicted to rise: Seventy-six percent of respondents believe that in 2022, going private will be the best strategic alternative for more companies—and sponsors will have the upper hand in making these deals
- Geopolitical Impact: Russia's invasion of Ukraine has directly impacted many operations, from supply chains to raw material production, leaving its mark on dealmaking. Thirty-nine percent of respondents say the war has directly impacted their ability to get deals done, while another 31 percent feel an indirect impact
- Politics play into the deal: While 37 percent of respondents noted regulatory and legislative environments can play a factor in getting a deal done, 67 percent said that the upcoming mid-term elections should have no impact on deal making
- Benefits of Remote: While two-thirds of dealmakers believe Wall Street will eventually fully return to the office, many continue to enjoy the benefits of a remote environment, such as no suits or dress shoes, working in socks (28 percent) and protected Saturdays (55 percent)
"The global upheaval we've experienced over the past year because of COVID, the war in the Ukraine, and other socioeconomical and geopolitical factors has led corporate leaders to reexamine and update their M&A strategy," said Craig Clay, president of global capital markets at DFIN. "Our report confirms that dealmakers are resilient, and despite these challenges, hopeful about the future. Companies that leverage the insights in our report will be well-equipped to make faster, better decisions in a very competitive marketplace."
DFIN has deep expertise in M&A, providing relevant advisory services and software solutions — including ActiveDisclosure and Venue® Virtual Data Room**— that help guide dealmakers as they go through the M&A process, allowing for the sharing of sensitive documents in a safe and secure environment.
*Published semiannually by DFIN, the nation's leading compliance company, the DealMaker Meter report provides answers to questions about everything from activities in sectors/industries to geographies and impacts. A blue-ribbon panel made up of top global DFIN dealmakers/partners (advisors, corporate clients, lawyers, and bankers) provide this free global market outlook.
**Venue® by DFIN Virtual Data Room (VDR) is an industry-leading platform designed to facilitate due diligence and eliminate risks that can compromise deals. It is continually optimized for security, productivity, and usability, and leverages AI technology and machine learning to accelerate deal closing.
The complete The DealMaker Meter - Summer 2022, The Resiliency of Dealmaking report is available for download on the DFIN website at https://info.dfinsolutions.com/Q2-22-DMM-Thank-You
About Donnelley Financial Solutions (DFIN)
DFIN is a leading global risk and compliance solutions company. We provide domain expertise, enterprise software and data analytics for every stage of our clients' business and investment lifecycles. Markets fluctuate, regulations evolve, technology advances, and through it all, DFIN delivers confidence with the right solutions in moments that matter. Learn about DFIN's end-to-end risk and compliance solutions online at DFINsolutions.com or you can also follow us on Twitter @DFINSolutions or on LinkedIn.
SOURCE Donnelley Financial Solutions
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