As 2020 is in full swing, deal makers are more bullish about the prospects for M&A and capital raising this year than they were at the start of 2019. The following Refinitiv Deal Makers Sentiment Survey 2020 forecasts illustrate a broadly positive trajectory with expectations of growth widely held. Particularly, the Americas are optimistic on equity, while Asia anticipates debt issuance growth. Read more about the global perspectives of deal makers as the report’s analysis provides a comprehensive view of how M&A and Capital Market professionals perceive deal making prospects for the year ahead. Highlights below.
- 47% of deal makers anticipate M&A volume growth, with an average predicted growth rate of +4.7%
- Asian deal makers anticipate a stronger M&A global growth rate, +10.4%, than American and EMEA counterparts.
- Key themes that will impact 2020 M&A: Economic, Trade & Political
- 62% of all deal makers consider European companies will be more attractive post Brexit, a significant increase from 2018. A similar proportion consider UK companies will be less attractive.
- 4 in 5 corporations believe they will make an acquisition in their own industry in 2020. 57% also believe they will acquire a business in another industry.
- Deal makers are most optimistic about technology with 64% expecting an increase and an average predicted growth rate of +8.3%.
- Americas bullish on equity, Asia confident on debt as they anticipate +6.9% growth
Matt Toole, Deals Intelligence Director, Refinitiv comments:
“It is, perhaps inevitable that fundamental factors such as economic growth and government policy remain top of people’s minds, although it is also notable that concerns over protectionism have started to fall away. What is more surprising is a continued nonchalance in terms of the big media themes – climate change, Brexit (particularly outside of EMEA), technological disruption or ESG. The lines between tech and other industries are increasingly blurred. Importantly, corporate optimism appears to be holding up, both in terms of in-house dealmakers’ expectations of making an acquisition this year (better than evens) and the prospects for revenue growth in the year ahead (on par with 2019).”
Download the full report here.
About Refinitiv Deal Makers Sentiment Survey: The report provides market practitioners with serious, actionable insights for the year ahead. To achieve this, we conducted 457 telephone-based interviews with senior deal makers, and discussed their expectations for growth rates in M&A, capital raising across equity and debt, as well as their regional and sectoral outlook. Learn more about the report’s compilation on page 24, ‘Methodology.’