US M&A: State of Affairs and Outlook Under the Biden-Harris Administration

Report 2 November

US M&A: State of Affairs and Outlook Under the Biden-Harris Administration

Based on a survey of 150 U.S.-based corporate and private equity executives, the results point towards a significant increase in deal volume in 2021. 59% of corporate respondents anticipate closing between 1-3 M&A deals over the next 12 months, and 25% expect to complete four or more. Just 7% reported undertaking that many deals in 2020. Those on the PE side are even more bullish. While one-quarter of private equity-focused respondents say they completed four or more deals in 2020, 56% expect to meet or exceed that threshold in the next 12 months.

Key findings include:

  • Respondents largely agree the Biden-Harris administration will have a positive impact on M&A: 64% of corporates and 60% of PE firms surveyed say the administration will be either conducive or very conducive for their dealmaking in the US.
  • The key driver of M&A activity over the next 12 months will be pursuing digital transformation: 24% (the largest such share) of respondents identify this as the most significant factor, and a further 19% cite it as their number-two concern.
  • Rising regulatory scrutiny is by far the most significant risk to respondents’ dealmaking over the next 12 months. 45% identified it as their primary concern, followed—at some distance—by geopolitical concerns/US trade policy (16%) and higher corporate tax rates (13%).

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