Global M&A deal volume has continued its meteoric rise throughout the pandemic to new frenzied highs with $513bn of transactions agreed in the first half of 2021, with US deal volume accounting for much of global deal making.

At the same time, an accelerated pandemic recovery in the US under Joe Biden is leading to inflationary fears, with several economists predicting a more hawkish monetary policy from the US Federal Reserve in the coming months. Fiscal policy is also on the agenda, as a new global corporate tax accord seeks to boost corporate contributions to the recovery. 

Cash-rich expansion-minded companies in different burgeoning sectors looking to ride the wave of the global pandemic recovery will need to contend with this new macroeconomic climate. What new measures will deal makers take to ensure they capture value in deals and navigate Bidenomics? Which sectors will continue to perform strongest?

The FT, in partnership with Datasite, provided a key forward looking market outlook for the US M&A market and explored the risks and opportunities that this new deal making environment poses.

How will US deal makers build on record M&A volumes in the face of monetary and fiscal policy shifts?

• Will the pace of deal making keep up with the speed of predicted US economic growth?

• How prepared are corporate acquirers for a rise in funding costs?

• With deals being fast-tracked to capture value, where will buyers look to capture high quality assets?

• What extra due diligence is needed, if any, as a result of macro policy changes?

• How could a new global corporate tax regime impact deal making? 

• How will central bank policies impact cross border M&A appetite?

Sectoral outlook for US M&A

• Will the pandemic recovery accelerate consumer trends in sectors, such as in technology, or will we see a return to pre-pandemic buying norms?

• To what extent is the current pace of deal making dependent on continuous company innovation in the face of changing customer expectations? 

• How will deal makers navigate antitrust scrutiny in technology and healthcare deals? Could this scupper future deal opportunities? 

• Is the SPAC boom over?

• What emerging sectoral opportunities will we see in 2022 and beyond? Are there deals to be made in historically undervalued sectors?

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