At least that’s what major industry players expect, surveyed by market analyst firm Refinitiv, which has just released its annual Market Confidence Index survey.
Confidence and optimism are on the rise for 2022, according to the 2022 Deal Makers Sentiment Survey, as more than half of the nearly 500 investment bankers surveyed predict a 9.6% increase in business acquisitions in 2022 .
And the outlook is even better for the Americas, where the market is expected to grow by 13.3% compared to last year. In Asia, more modest growth is expected for the current year, at 8.8%. Europe, the Middle East and Africa, expectations stand at 5%.
Economic conditions such as recession, taxation and inflation will be the main drivers of activity in the M&A market, according to 54% of respondents.
COVID-19 has disrupted economic stability and forced the biggest players to turn to partnerships to offset their losses. This has had the effect of increasing cross-company collaboration across the globe, which should fuel mergers. Not to mention that the many changes in both markets and economic conditions are growth vectors for the mergers and acquisitions market.
All this fuels the optimism of market players who believe that 2022 will be a boon for them.
This is good news, as the first quarter of 2022 was rather slow to take off compared to last year. Overall, the market was thus showing a decline for the first months of 2022, while global activity on this front was down 21% and cross-border transactions were down 24%.