Global dealmakers are regaining their appetite for investment amid the easing of key economic and political risks and the emergence of positive macroeconomic deal drivers. As a result, we expect global deal activity to accelerate into 2018.
This is according to our latest Global Transactions Forecast, which predicts that total global M&A will rise to a peak of US$3.2 trillion in 2018, with IPO value improving by more than 50 per cent year-on-year to nearly $290 billion.
Following this upswing, both M&A and IPO values will drop in 2019 and 2020 as global GDP, trade and investment growth slows, borrowing costs rise in key economies, and stock market valuations start to look stretched. In emerging economies, we forecast activity to peak a year later in 2019, followed by a cyclical downswing.
Paul Rawlinson, Global Chair, said:
After a few soft patches in 2017 we have a more optimistic outlook for the global economy and dealmaking in 2018, as long as the brakes are not put any further on global free trade. We see an uplift in both M&A and IPO activity as dealmakers and investors gain greater confidence in the business prospects of acquisition targets and newly-listed businesses.