In New Report, Akin Gump Sees Resurgent Global Private Equity and M&A Markets
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(New York and London) – Amid a rebound in private equity and mergers and acquisitions (M&A) activity in the second half of last year and a number of factors pointing towards an increasingly active M&A market, a new report from Akin Gump states that investors are looking forward to 2021 with renewed optimism.
Those are among the findings of Akin Gump’s “Global Private Equity/M&A Survey 2021: Opportunities Ahead,” a report based on a fourth quarter 2020 survey of more than 120 senior private equity and corporate dealmakers who shared their views on the year ahead.
Speaking of the report’s findings, Akin Gump New York corporate partner David D’Urso stated that, while there was profound disruption and uncertainty in capital markets last year, “M&A activity has remained resilient and well positioned for 2021. We have seen dealmaking cluster around high-quality assets in sectors that have sat at the core of the response to the pandemic, such as technology and health care, but opportunities to invest in distressed companies directly impacted by pandemic restrictions at attractive valuations have also emerged.”
Added London partner Gavin Weir, “the recovery of stock markets, the rollout of COVID-19 vaccine programs, supportive central bank monetary policy and the large war chests available to private equity managers and special purpose acquisition companies all point to a buoyant M&A market this year.”
Some of the topics discussed in the report include:
- Specific factors likely to drive dealmaking.
- Regional and industry-specific expectations.
- How M&A has adapted and evolved, including deal structuring and the rise of direct lending.
The report concludes by observing that, despite ongoing uncertainty around the length of time it will take to fully reopen economies, several factors point to a busy 2021, including “recovering stock markets, high levels of liquidity and dry powder, the strategic imperative to acquire digital capability and rising distressed M&A opportunities.”
To read the report in its entirety, please click here.
Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.
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