BDO Horizons 2021 - Issue 4

Welcome to the fourth edition of Horizons in 2021, in which BDO M&A professionals around the world present their insights on mid-market deal activity and trends.

In this issue we see how Private Equity continues to be a growing force in the M&A market in 2021. The third quarter of 2021 saw a slight pause for breath in deal activity but still recorded a very respectable deal activity on a par with pre-pandemic levels.  This pause was more noticeable with trade buyers, while private equity carried on investing at record levels.  Private equity investors now represent over 25% of global mid-market deals and over 30% of aggregate deal value.

In the UK and Ireland, Katharine Byrne, Head of the BDO Ireland Corporate Finance Team reports:

  • 128 transactions completed with an aggregate value of USD 13.4bn
  • With 29% of deal volume, private equity was a key driver in quarterly M&A activity
  • TMT leads the way in sector activity with 37% of all deals.

Looking ahead for the UK and Ireland, Katharine expects to see an increasing number of transactions in TMT, Business Services and Financial Services. The BDO Heat Chart also highlights a return for M&A activity in Energy, Mining & Utilities as trade and financial buyers look to acquire renewable energy companies. But sustainability is not just confined to the energy sector. ESG is now impacting M&A in all sectors as sustainability criteria are becoming an increasingly important factor for institutional and private investors in choosing which companies to invest in.

As a global organisation with operations in most countries, we have been able to see how COVID-19 has affected sectors and regions differently by keeping in regular touch with our colleagues. This issue brings you up to date commentary on deal activity levels, a special feature on the merits of Cyber Due Diligence and we also look at the “Path Ahead” in terms of the trends in analyst earnings estimates. We zoom in on TMT, Real Estate and Natural Resources and, as always, we have a plethora of heat charts showing potential M&A activity in the next few months.


Content adapted from BDO Global.

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