ISSUE 1 | 2022
WELCOME WELCOME TOTHE FIRST EDITIONOF HORIZONS IN 2022, INWHICH BDO M&A PROFESSIONALS AROUNDTHEWORLD PRESENT THEIR INSIGHTS ON MID-MARKET DEAL ACTIVITY ANDTRENDS
by over 30% from the previous year. Over 120 countries contributed to that record and we are grateful to the efforts of all of our 2,500 people that were involved in helping our clients succeed. We welcomed new teams in countries including Hungary and the Middle East and we hope that this is the year when we get the chance to meet some of our international colleagues in person again. With theWinter Olympics just around the corner our publication takes on an appropriate theme and we hope you enjoy the coverage if you tune in. Otherwise we hope you stay safe and well.
We look at the trends above in more detail in our Global View article. In our lead article we look at the hugely important theme of Environmental, social, and governance or ESG issues which are now front and centre in today’s business world and high on investors agenda. We examine the growing body of research that points to the positive correlation between a company’s ESG credentials and their financial performance and value creation. In our sector view, we look at Industrials &Chemicals, TMT and Logistics and supply chain. We look at why future looks bright for Industrials &Chemicals M&A. With TMT we explain why we believe strong deal momentum looks set to continue in 2022. In Logistics and supply chain we look at howM&A bounced back in record-breaking year. Along with the market, we at BDO, also experienced a record breaking year with 2,020 deals which was up
Well, 2021 will stand out as a vintage year for global mid-market deal activity and amount of capital deployed. Not even a slight dip in deal activity in the final quarter would detract from that picture which is truly remarkable against the backdrop of the pandemic. Private equity was the coming force in 2021 with a marked rise in the number of investments in new deals. Average deal value also continues to be at a record level and we believe this reflects the amount of cash chasing deals and the strong multiples being paid. The Heat Charts suggest that 2022 will be another good year for M&A. The two dominant regions for deal activity were once again NorthAmerica and Greater China but NorthAmerica saw much bigger increase in deal activity of the two regions in the year. In terms of sectors, TMT saw the biggest gain in deal activity over the prior year. That said, all sectors enjoyed a growth in deals.
SUSANA BOO INTERNATIONAL CORPORATE FINANCE COORDINATOR
JOHN STEPHAN HEAD OF GLOBAL M&A
john.stephan@bdo.co.uk
susana.boo@bdo.co.uk
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