Four Mergers & Acquisition trends in 2022

According to Willis Towers Watson, a number of trends are emerging that could strongly influence the M&A market in the coming years.

ESG targets drive mergers and acquisitions

ESG (environmental, social and governance) priorities are high on the  agendas of CEOs. There is a growing emphasis on buying, restructuring, or divesting assets that improve the environmental footprint. Themes such as decarbonisation will boost the number of transactions and provide opportunities for new businesses arising from innovations to mitigate climate risks.
Digital transformation accelerates

Companies have been focusing on the digital transformation of their operations for several years, with the pandemic increasing the speed and scope of change.
On top of this, companies are forced to determine how to attract and retain new talent in a tight labour market. Acquiring innovative companies with specific competences may offer a solution.

Supply chain-driven mergers and acquisitions

The pandemic has caused worldwide problems with the supply of goods. Many companies will strive for more independence and will make acquisitions to bring certain links in their supply chain more under their own control. Targeted takeovers or mergers offer the solution.

Mergers & Acquisition cycles change

Even in economically unstable times, private equity players and other investors now have a greater desire to close deals than in the past. The large sums of cash at their disposal and the low interest rates will certainly play a role in this.
In addition, there is a growing trend to set up professional internal teams for M&A within the companies, enabling them to identify and seize opportunities more quickly in order to concretise acquisitions.