Putting the pieces into place:
The next drivers of strategic M&A
Today’s rapidly changing economy has prompted business leaders to reflect on the kind of businesses they want to lead into the future.
Emerging from the pandemic and looking out over a geopolitical landscape significantly impacted by the outbreak of the war in Ukraine, organizations are contending with inflation, rapid innovation, market volatility and supply issues.
Against this backdrop, how can leaders make the strategic decisions required to succeed in the current economy? What are the future drivers of business success?
Drawing on the views of 1,200 business leaders from around the world, Putting the pieces into place: the next drivers of strategic M&A by Eversheds Sutherland looks at the future drivers of strategic M&A and how M&A can unlock value.
Our study reveals that more than seven in ten business leaders are focusing on a new “M&A triarchy” to deliver future business success: talent, tech and trade. And while business leaders continue to view M&A as a crucial driver of strategic growth, the research unveils, for the first time, the new attributes business leaders value in a target.
Brand and reputation is at the top of the list, perhaps showing the extent to which dealmakers recognize the impact of transparency and the value of positive brand advocacy in these uncertain times.
When the primary research was conducted in early 2022, business leaders were largely confident in the economic outlook and most felt that the climate for conducting M&A deals over the next year was strong. But the war in Ukraine and its impact on global markets are shifting plans.
A further top-up study conducted in April 2022 1 indicates that, although business confidence remains high, almost all organizations with an appetite for M&A are postponing at least some M&A activity due to the effects of the conflict – notably, sanctions on target companies, increasing systemic risk within industries and the impact on valuations reducing available capital. Business leaders say that timelines are slipping, deal volumes are decreasing and dealmaking has become more complex, in the short-term.
Putting the Pieces into place: the next drivers of strategic M&A aims to help stakeholders on all sides of the M&A equation understand how business leaders perceive the current economic and geopolitical context and how this impacts strategic priorities for organizations.
Global panel of M&A experts 2
Eversheds Sutherland would like to thank their global panel of M&A experts for their insights and contributions to Putting the pieces into place: The next drivers of strategic M&A.
Senior Vice President | Oshkosh
Secrétaire Générale | Rothschild & Co
Chief Counsel | Securities & Transactions | Tenneco
Director | M&A and CSD Legal | Nokia
Chief Executive Officer | ALTRAD
Louis G. Véronneau
Executive Vice-President and Chief Transformation Officer | SNC-Lavalin
Global Head of Investment Banking | William Blair
- In April 2022, a supplementary opinion research study among 75 business leaders was carried out to assess how attitudes and approaches to M&A had changed since the primary study (a global study of 1,200 business leaders carried out in January and February 2022). Due to the smaller sample size, results of this second study are indicative rather than representative.
- Our global panel of M&A professionals was interviewed for their thoughts on the business landscape, the levers of M&A and what’s driving value. Comments from the panel can be found throughout the report.