Amidst the backdrop of a fast-changing landscape, we surveyed 300 global M&A dealmakers to find out current sentiment and COVID-19’s impact on the future deal environment, along with challenges and opportunities on the horizon.

Key findings include:

• Dealmakers are optimistic, with the middle-market set to dominate. Almost two-thirds (64 percent) of dealmakers in our survey expect the level of M&A activity over the next 12 months to increase. Nearly a quarter (24 percent) expect activity to increase significantly. An overwhelming 83 percent of firms expect to undertake middle-market M&A deals (deals worth less than USD two billion) over the next 12 months.
• COVID-19 boosted dealmaker appetite; PE to lead the way. Over half (51 percent) of respondents say that COVID-19 has increased their dealmaking appetite — and 13 percent say it has increased significantly. Private equity respondents are much more bullish than corporates — just four percent of PE firms say their appetite has significantly decreased post-COVID, compared to 16 percent of corporates.
• Spotlight on ESG due diligence. Environmental, social and corporate governance (ESG) is more than just a fad; it’s a critical piece of the M&A puzzle. Over half (62 percent) expect ESG scrutiny in the deal process to increase over the next three years.
• Data analytics and cybersecurity disruptions. Data analytics is viewed as the most disruptive trend set to affect M&A processes: Fifty-five percent of respondents expect this to be the case. Cybersecurity is also high on the dealmaker agenda: Fifty-two percent of respondents see this as a disruptive trend that will impact M&A.