HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 29
DACH HEAT CHART BY SECTOR
Industrials & Chemicals
110 26% 85 20% 60 14% 59 14% 54 13% 26 6%
TMT
Business Services
Pharma, Medical & Biotech
LOOKING AHEAD
Consumer
Financial Services
While striking a note of caution in January 2022, both the Heat Chart and underlying fundamentals supported a relatively positive outlook for DACH Mid-Market M&A in 2022. The Ukraine War has obviously clouded that perspective. M&A did not stop in March 2022 and Mid-Market M&A held up better than larger deals and capital market activity. This is despite the significantly weakened economic sentiment (see downgrades in GDP outlook in April 2022 and the collapse in Germany’s business sentiment IFO index in March albeit it has stabilized in April at low levels). Management will be resetting priorities focusing on addressing inflation trends which have been exacerbated by the Ukraine War particularly looking at supply chain issues and energy prices and ensuring that the disruption to business in Russia, Belarus and Ukraine is contained. The extent to which this impacts on M&A activity will depend on the duration of the Ukraine War and its ongoing impact. In that context a strong Heat Chart may only reflect an increasing back-log.
Energy, Mining & Utilities
12
3%
Real Estate
10 2%
Leisure TOTAL
3
1%
419
DACH MID-MARKET VOLUMES BY SECTOR
2021
2022
26
123
1
11
7
41
3
9
16
70
5
16 5 13
2 3
9
37
Technology & Media
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech Real Estate
Consumer
Business Services
Leisure
Industrials & Chemicals
Dach
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