ISSUE 2 | 2022
10
NORTH AMERICA HEAT CHART BY SECTOR
TMT 493 23% Pharma, Medical & Biotech 354 16% Business Services 333 15% Industrials & Chemicals 331 15% Financial Services 194 9% Consumer 187 9% Energy, Mining & Utilities 182 8% Leisure 42 2% Real Estate 33 2% TOTAL 2,149
the war in Ukraine doesn’t escalate any further and the worrying increase in inflation moderates in the second half of the year. This optimism is shared by most North American deal advisors and is based on the sheer backlog of deals in the market as well as the underlying fundamentals of somewhat resilient debt and equity markets, abundant levels of cash and a relatively strong economy. Private equity M&A involvement will likely remain elevated as money managers are anxious to put dry powder to work and take advantage of lower valuations evidenced in Q1 and with less competition from distracted and overly cautious corporates.
in Q1 2022 versus Q1 2021, as large pharma companies took a breather from the pandemic-fueled deal frenzy and a dramatic rise in valuations and adopted a more cautious strategic approach due to the market volatility caused by the geopolitical tensions and inflation concerns. Deal-making in the technology sector continued to lead the way, accounting for nearly half of all middle-market deals in Q1. Acquisitive companies across many industries believe that their business model needs to change dramatically in the foreseeable future, mostly because of the impact of technology has had on staying competitive which accelerated during the pandemic. Given the impact of the pandemic, new entrants and tech disruptions are redefining business models and changing the way of life. As a result, emerging industries such as TeleHealth, FinTech, and CleanTech are dominant areas of focus for M&A. As for the balance of 2022, North American M&A activity should remain healthy, albeit at a slower pace than the record-setting highs of 2021, assuming
NORTH AMERICA MID-MARKET VOLUMES BY SECTOR
2021
2022
1029
280
BOB SNAPE PRESIDENT
18
378
bsnape@bdocap.com
2
52
77
407
15
67
235
44
222
36
166
35
219
38
Technology & Media
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech Real Estate
Consumer
Business Services
Leisure
Industrials & Chemicals
North America
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