Global mergers and acquisitions (M&A) activity continues to accelerate at a rapid rate1 in both private and public markets as the world recovers from the lows of the pandemic while analysts predict that the 2023 M&A market could represent a return to healthy volumes2.
This accelerated M&A activity is also being characterized by complexity, with transactions including features that would have been unfamiliar to dealmakers just a few years ago, such as the prominence of ESG considerations, ferment in public markets, and digital technology becoming more central to most business models3.
The rising influence of these factors on M&A demands new ways of thinking about value creation and risk. “For instance, with digital so undoubtedly central to how businesses operate and drive revenue today, digital assets and capabilities will be under even greater scrutiny,” says Alistair Lester, Aon’s global co-CEO for M&A and Transaction Solutions. “Buyers are now looking closely at how an acquisition target runs its IT and other processes.”
“We can expect more scrutiny and critical challenges around deals going forward,” he adds.