Global M&A Dealmakers Signal More Activity in 2023: Sentiment Report

Rhea-AI Summary

SS&C Technologies (Nasdaq: SSNC) released the 2023 Global M&A Dealmakers Sentiment Report based on a survey of 300 global M&A professionals. Conducted in collaboration with Mergermarket, the survey indicates optimism despite challenges in the dealmaking environment. Key findings reveal that 62% anticipate an increase in M&A activity over the next year, and 72% expect more scrutiny on ESG issues in M&A processes. Additionally, 68% believe deal automation will impact M&A in the next 12 months. The report stresses the importance of strategic agendas in acquisitions and highlights challenges in securing funding as capital costs rise.

Positive

• 62% of surveyed M&A professionals expect increased M&A activity over the next year.
• 72% predict greater scrutiny on ESG matters in M&A processes—a 10% increase from 2022.
• 68% foresee deal automation affecting M&A in the next 12 months, up from 42% last year.

Negative

• Funding challenges are increasing as capital costs rise and lenders become more risk-averse.

SS&C survey of 300 global M&A professionals signals industry innovation in 2023

WINDSOR, Conn., Jan. 18, 2023 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced the publication of the SS&C Intralinks 2023 Global M&A Dealmakers Sentiment Report.

In association with Mergermarket, SS&C Intralinks surveyed 300 global M&A dealmakers from 225 corporations and 75 private equity firms to see where the market is heading and the challenges and opportunities.

"Despite continuing headwinds and a difficult dealmaking environment, market sentiment remains optimistic," said Ken Bisconti, Co-Head of SS&C Intralinks. "M&A professionals are adapting and finding new ways to create value in their deals, manage ESG and DEI topics, and increase productivity with the digitization of due diligence."

Key findings from the report include:

• 62% of respondents expect overall levels of M&A activity to increase over the next year
• 72% expect ESG issues to receive more scrutiny in M&A processes over the next three years—a 10% increase from 2022
• 68% say deal automation will affect M&A processes in the next 12 months, compared to 42% last year
• 64% of private equity dealmakers expect to undertake four or more deals over the next 12 months, compared to 34% of corporate dealmakers
• More than half of respondents said the diversity balance of an organization is important in new targets

The report also highlights the following key considerations for M&A dealmakers in the coming year:

• Corporate buyers with a clear strategic agenda see more opportunities to accelerate transformation during periods of affordable valuations.
• During due diligence, dealmakers can avoid lengthy and vulnerable deal processes with robust tools, including VDRs.
• Acquirers must approach M&A through an ESG lens, but beware of "greenwashing" and scrutinize targets' claims on ESG in more detail.
• Funding is becoming increasingly challenging as capital costs rise and lenders become more risk-averse. Buyers should ensure they have funding and contingency plans if lenders withdraw due to changing circumstances.

Click here to read the full report.

SS&C Intralinks is a pioneer of the virtual data room, enabling and securing the flow of information by facilitating M&A, capital raising and investor reporting. SS&C Intralinks has executed USD35 trillion worth of financial transactions on its platform.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology.

Additional information about SS&C (Nasdaq: SSNC) is available at www.ssctech.com.

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SOURCE SS&C

FAQ

What does the 2023 Global M&A Dealmaker Sentiment Report reveal for SSNC?

The report indicates a majority of M&A professionals are optimistic, with 62% expecting increased activity.

How many M&A professionals participated in the SSNC survey?

The survey included 300 global M&A professionals from 225 corporations and 75 private equity firms.

What key trend in M&A does SSNC report highlight?

The report highlights increased scrutiny of ESG issues in M&A, with 72% of respondents expecting this focus to grow.

What challenges do M&A professionals face according to SSNC's report?

Professionals face challenges regarding funding as capital costs rise and lenders become more risk-averse.

What is SSNC's role in facilitating M&A?

SSNC, through its Intralinks division, provides tools and support for M&A processes, including virtual data rooms.