North American M&A Outlook for 2022/2023

By Generational Equity


The question we are being asked repeatedly in our Growth and Exit Planning Conferences is when will the demand for acquisitions slow? Based on a recent survey conducted by SS&C Intralinks and Mergermarket (for more details on these two leading institutions, see their info below), the answer is NOT SOON!

Here is a sample of their findings:

With deal-flow records being smashed and some of the largest transactions ever made successfully closing, investors in North America are more bullish than their counterparts in any other region, our research finds. Almost half (47 percent) predict an increase in dealmaking and a further 29 percent expect a significant increase.

Level of M&A activity 2022-2023

This is significant data to consider. This means that despite geopolitical uncertainty, pending interest rate hikes, looming recession concerns, and a mid-term election, buyers in North America are very bullish on their M&A plans over the next 12 months. Indeed with 76% of those surveyed indicating an increase in M&A activity (far more than any other region), it appears that business owners in North America need to seriously consider their exit plans because buyers are out there and are motivated!

Far too many business owners we meet with, having survived the impact of a pandemic and nationwide health lockdown, assume that the M&A environment has been negatively impacted. Actually, based on the Intralinks/Mergermarkets research, nothing could be further from the truth:

It’s difficult to argue with the numbers. The U.S. is experiencing a bona fide M&A boom and 47 percent of North American respondents say the COVID-19 economic stimulus has precipitated an increase in dealmaking appetite, with 17 percent saying it has sparked a significant increase. No other country has seen government stimulus on the scale of the U.S. This cash has filtered into financial and M&A markets, with abundant debt financing, opportunities to raise equity and a huge demand for acquisitions.

Impact of COVID-19 on dealmaking appetite 2022-2023

No matter where you stand on the Federal Government's response to the COVID crisis, it is fascinating to see that the fiscal stimulus programs actually worked for M&A in North America, with over 60% of the respondents indicating that the fiscal programs actually “stimulated” their deal making appetites!

As we have said before, we are not surprised at the results of surveys like this. Generational is experiencing another record-breaking deal making year (4th in a row actually) with YTD deal closings UP 17% over 2021

Here is the reality and the wonder of living in the strongest democracy and economy in the world: Investors who are out want in and Investors who are in want more!

This means that if you are the owner of a privately held company today, you still have an opportunity to monetize your largest asset and protect your family’s financial legacy for years to come.

To learn more about current M&A trends, please set aside some time to attend a Generational conference. While there you will learn what thousands of other business owners have learned: How to maximize your exit and retain and grow the investment you have made in your company. Please use the following links to learn more:

About SS&C Intralinks

SS&C Intralinks is a leading financial technology provider for the global banking, dealmaking and capital markets communities. As pioneers of the virtual data room, their technology enables and secures the flow of information, empowering their customers to work more productively and with complete confidence. Intralinks facilitates strategic initiatives such as mergers and acquisitions, capital raising and investor reporting. Their solutions enhance these activities by streamlining operations, reducing risk, improving client experiences and increasing visibility.

About Mergermarket

Mergermarket is an unparalleled, independent mergers & acquisitions (M&A) proprietary intelligence tool. Unlike any other service of its kind, Mergermarket provides a complete overview of the M&A market by offering both a forward-looking intelligence database and a historical deals database, achieving real revenues for Mergermarket clients.

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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