SECTOR M&A OUTLOOK
GLOBAL M&A TRANSACTIONS BY SECTOR (US$B)
Consumer goods
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Energy
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Basic materials
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Financials
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Governmental services
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Healthcare
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Pharmaceuticals
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Industrials
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Technology
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Telecommunications
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Utilities
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Total
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SECTION 1 - PHARMA AND HEALTHCARE
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SECTOR 2 - FINANCE
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SECTOR 3 - TECHNOLOGY AND TELECOM
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SECTOR 4 - CONSUMER GOODS
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SECTOR 5 - ENERGY
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SECTOR 6 - BASIC MATERIALS
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GLOBAL M&A TRANSACTIONS BY SECTOR (US$B)
2014
2015
2016
2017
2018
2019
2020
Basic materials
172
227
172
163
148
138
104
Consumer goods
462
481
483
450
504
428
347
Energy
326
293
164
175
222
207
162
Financials
495
575
540
476
578
538
440
Governmental services
0
1
0
0
0
0
0
Total
2,479
3,383
2,810
2,503
2,966
2,761
2,316
Healthcare
77
175
85
113
148
152
139
Pharmaceuticals
269
320
220
225
297
290
266
Industrials
275
471
382
350
385
373
313
Technology
245
350
371
338
415
386
336
Healthcare
99
304
130
150
193
179
151
Pharmaceuticals
58
86
263
63
74
69
58
From a sector perspective, our forecast shows a clear shift from investor apprehension to appetite in the coming years, with several of the industries hit hardest by the M&A slowdown in 2016 primed for recovery. Healthcare, pharmaceuticals, telecom and energy will experience the strongest turnarounds, although we expect the rise in energy M&A to be relatively short-lived.
Sectors like consumer goods, industrials and finance that have experienced more moderate slowdowns in deal activity over the last two years are likely to have slower upturns.
One outlier to this rule is basic materials, which experienced a major slowdown in deal activity during the global financial crisis (deals peaked at US$405 billion in 2007, fell to US$117 billion in 2009, and have fluctuated between US$120-220 billion since). We expect this slowdown to continue, albeit at a slower pace.
Another exception to the rule is technology, where activity has been strong in the past few years, and will likely strengthen further in the years ahead.
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TRANSACTIONS FORECAST
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SECTOR M&A OUTLOOK
Michael F. DeFranco
Koen V. Vanhaerents
Contact
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Global M&A Outlook
Regional M&A Outlook
Sector M&A Outlook
IPO Outlook
Appendix A: Transaction Attractiveness Indicator
Appendix B: Country Forecasts
Appendix C: Methodology
M&A Transactions (US$B)
M&A Transactions (# Of Deals)
Domestic IPOs (US$M)
SUMMARY
INTRODUCTION
MACRO TRENDS
Baker-McKenzie-New-Logos
RISKS
CONCLUSION
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MACRO TRENDS
INTERACTIVE TOOL
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APPENDIX
FORECASTS
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