It is that time of the year again, dealmaking prediction time. Clifford Chance, legal advisory, says in its latest annual Global Outlook research report that these will be the three big trends for 2015.
- Private Equity and Africa: the need for private equity to exit will help to drive dealmaking. Strategics are expected to increase too in 2015. (See graphic from mergermarket)
- Tech Still hot and Security too: M&A is showing no signs of slowing down, as the underlying fundamentals support consolidation and convergence. Cyber security and data privacy compliance are set to provide an increasingly important focus in deals across sectors where technology is important.
- M&A Financing: Liquidity is predicted to remain strong, enabling debt financing, driven by competition amongst financing product developers, a resurgence in bank lending Next year, bespoke and innovative financing options for large cap-deals are expected to continue to lead the way.
The report also looks aback at 2014, highlighting the resilience of the US M&A market, with Europe and Asia Pacific showing growth in M&A deals. Cross-border M&A continued to rise, with M&A activity between the five main regions accounting for 25% of total global M&A deal value. As stated elsewhere in this week’s Digest, Healthcare is a fast riser. As for PE, it says investors in developed markets have diversified into multiple asset classes, new niche sectors and entered different geographies, particularly Africa.