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Private-equity funds boosted M&A deal-making in 2021: Ciesco

Private-equity funds boosted M&A deal-making in 2021: Ciesco
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Confirm the trend you spotted Asia Pacific Campaign In late December (see “After a tough 2020 M&A action comes back to life in 2021”), a new M&A report from UK-based consultancy Ciesco revealed that worldwide, in all Industries, the number of transactions jumped by 60% to 1,747 deals in 2021, compared to 1,092 deals in 2020, and a jump of 30% from 2019, when 1,345 deals were signed. The value of the deal, according to Ciesco, increased more than 55% to $87 billion in 2021.

“The year 2021 begins a period of reinvention for many companies in the wake of the extraordinary events of 2020,” said Chris Sahota, CEO of Ciesco. Asia Pacific Campaign. Digitization, data, and technology have driven structural transformations in the technology and marketing services industries through 2021.

According to Ciesco data, digital media, martech, and digital agencies were the main focus areas for dealmaking in 2021, accounting for nearly half of all transactions for the year. Martech and the digital agency were of particular interest with activity increasing by 90% and 110%, respectively.

Private equity funds continue to be a major driver of activity. According to data from Ciesco, polyethylene buyers accounted for 45% of deals in 2021, compared to a peak of 42% in 2019 and 37% in 2020. Five years ago, that statistic was about 19%, according to this company’s estimate.

If private equity funds had a huge success in 2021 in the tech, digital, media and marketing sectors, the holding groups had a quiet year. They collectively posted just 14 deals in 2021, down 7% from the previous year. Regardless of the year 2020 ravaged by the Covid virus, the decline will be even more severe, Sisko believes. The slowdown is particularly sharp compared to the past few years, when efficient networks conducted up to 95 transactions per year.

The consultancy followed suit, too, with a 44% drop in deals for 2021, following a 30% drop the year before. However, there was an appetite for strategy, and martech and CRM are these advisory firms, with Accenture being the most active company in the sector, with eight deals, according to Ciesco.

Elsewhere, mid-market companies, including S4 Capital owned by Sir Martin Sorrel, were reasonably busy in 2021. According to data from Ciesco, S4 Capital closed 10 deals in 2021, and Stagwell Group, with six deals, doubled the number Deals closed in 2021 vs. 2020.

Geographically, the US and UK were the busiest M&A markets in 2021, with 771 and 230 deals, followed by France, Germany, Canada and the Netherlands. While Western Europe as a group saw a 72% increase in deal activity, other markets also recorded increased activity, according to a deal advisor. Like 2020, cross-border transactions accounted for 36% of all deals in 2021 as well.

Ciesco expects the frenetic pace of deal-making to continue into 2022. “Business leaders will want to continue to adapt their companies to the new world and drive business transformation across all parts of their organization — marketing, sales, commerce, customer service, and supply chain,” Sahota said. From £1.7 trillion [$2.3 trillion] Global Dry Powder War Fund to invest behind strong management teams…. 2022 will be an exciting year for new business models and data- and technology-driven changes occurring at an even faster pace. “

This story first appeared in the Asia Pacific Campaign.

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