Where in the world is deal making dominant?

See our analysis of global M&A ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Belinda Yu   Editor, Atlanta Make me a match (in M&A) In the news • Transatlantic bargain hunting. As the pound plummets and the euro slouches against a strong dollar, US buyers looking for bargains might be attracted to British and European companies, M&A advisers say. That could relieve sluggish M&A activity that's been set off by rising energy costs, increased borrowing rates, and risks of a global recession. Since early September, roughly $300 billion in market capitalization has vanished from one UK-based stock market index. But currency shifts can typically take half a year to affect global deal volumes. [Bloomberg] • Overseas takeovers. Listed companies in the UK have been struck by a wave of acquisitions at the same time that IPOs have declined, raising concerns about the UK stock market's strength. The total value of UK companies acquired by foreign competitors in 2022 has topped £41 billion so far. Meanwhile, new firms have received an anemic £574 million from investors over the first three quarters of 2022. As the sterling flags, expect to see further deal making targeting UK companies, bankers say. [FT] Logic suggests that an uncertain market would encourage more small and fewer megadeals. But megadeals account for 28% of 2022 deal value versus 23% a year earlier. On McKinsey.com • Global M&A slows. After reaching an all-time high in 2021, the global M&A market is slowing. The value of large deals in early 2022, about $25 million, is 24% down from the prior year. At the same time, deal volume has fallen 12%. But it's natural for decision making to slow in an uncertain environment, notes McKinsey senior partner Andy West. Although overall M&A activity has declined, private-equity firms are actually outpacing their record-high 2021 performance, delivering 26% of deal value in the first half of the year, up from 25% for all of 2021. • Where deal making dominates. The slightly slower pace of deal making means that business leaders can "take [the] time to really understand the drivers of the assets that [they're] considering," says McKinsey senior partner Oliver Engert. That includes cultivating the management team and the newly acquired employees to go beyond a mere transaction, Engert adds. See which regions lead the world in the most M&A activity, along with the sector that dominates deal making, accounting for 30% of total deal value worldwide. Get the global M&A research Was this forwarded to you? Sign up here. Or send us feedback— we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007