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Laxman Pai, Opalesque Asia: Despite current market conditions, most global dealmakers see increased M&A activity in the next 12 months, said a study.
According to a new survey from Datasite, the majority (68%) of the more than 540 global dealmakers surveyed said they expect global deal volume to rise in the next 12 months, with most (41%) expecting to see the biggest increase in transformational acquisitions or mergers, followed by debt financing (37%) and secondary buyouts (34%).
Additionally, most dealmakers (78%) are pricing at least a 5-7% increase in inflation, if not higher, into their financial valuation models for the rest of the year.
"Deal activity is expected to increase over the next 12 months, though most dealmakers foresee a reduction in multiples, even as inflation increases are priced into models," the survey revealed.
"Despite geopolitical uncertainties and overall market volatility, the global deal activity itself is still strong," said Rusty Wiley, CEO of Datasite. "Activity on our platform, which facilitates deals at their inception, rather than announced, has increased by double digits in the first half of the year, with many organizations still investing in technology to ensure their competitiveness. However, when it comes to valuations, dealmakers will likely adjust multiples downward so the net result may be lower valuations overall in the second half of the year."
Other survey findings support this. When asked how inflation is expec...................... To view our full article Click here
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