[Pitchbook] Global M&A activity bifurcated for much of Q1 2022, with previously negotiated deals closing on time while announced activity diminished due to the uncertainty created by Russia’s invasion of Ukraine, according to Pitchbook's latest Global M&A report.
Final deal counts for the quarter fell compared to the fervent activity seen in the back half of 2021 but were healthy compared to the past five years.
Key takeaways
As much of the globe pushes beyond the worst effects of the COVID-19 pandemic, consumer spending has been dampened as housing and transportation costs lift.
Higher-growth companies have lagged as have tech-heavy indexes, including NASDAQ. Going forward, analysts expect deal professionals will be walking a tight rope.
PE continues to account for a swelling proportion of deal activity, including a significant percentage of the largest deals. Eight of the 20 largest deals to close in the quarter were bought by financial sponsors.
Capital intensive industries—including energy and industrials—appear poised for prolonged growth, despite higher raw materials costs.
As much of the globe pushes beyond the worst effects of the COVID-19 pandemic, consumer spending has been dampened as housing and transportation costs lift. Boosting consumer spending is critical to keep economies moving forward as governments and central banks pull back their stimuli.
The debate around central bank stimulus and the proper level for interest rates still rages. Inflationary pressures continue to mount across the globe; the US Consumer Price Index came in at 8.5% for the 12 months ending in March 2022, and Euro area annual inflation was expected to be 7.5% in March 2022.2 The price of nearly everything appears to be rising, including labor, energy, technology, consumer goods, rent, and more.
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