Continued prudence in M&A activity forecasted in WTW’s Global Transactional Risks Review and Outlook
May 09 2024 - 5:51AM
According to the Global Transactional Risks Review and Outlook from
WTW (NASDAQ: WTW), a leading global advisory, broking, and
solutions company, “adaptation” might best describe last year’s
global M&A insurance market, with participants facing volatile
macroeconomic conditions and prudent capital deployment. The
cautious approach to M&A activity is set to continue in 2024.
The report highlights several factors contributing to the
decline in M&A activity. Rising interest rates, geopolitical
tensions and ongoing supply chain disruptions have created a
challenging environment for deal-making. Additionally, the gap
between buyer and seller expectations, particularly in terms of
valuation, has further hindered deal completion.
Looking ahead, while run-away inflation has been tempered in
most of the world’s larger economies, the consequent deployment of
hawkish monetary policy and its effect on leverage opportunities
has remained a stifle on deal activity. The impact of
macro-economic factors and geopolitical unpredictability continue
to have a chilling effect on overall activity, making a cautious
increase in deal making activity the likely prospect through
2024.
Jeremy Wall, Global Head of FINEX, said: “For transactional risk
insurance markets this has meant that provided they suffer no
exposure to perceived problem jurisdictions or industries, insureds
retain an excellent position with both pricing and risk appetite
settling well off of historic averages in the favour of
policyholders.”
“The report suggests that in 2024 a tentative approach will
continue as buyers, both private equity and corporate, with
considerable cash reserves will keep a keen eye on value and adjust
expectations of a sudden return to a bull market or the distress
jamboree which some market commentators had been predicting last
year.”
Alex Keville, Head of M&A and Private Equity, Global FINEX,
added: “Data plays an essential role in the effective use of risk
transfer solutions. WTW remains at the forefront in leveraging
connected global insights and analytics to stay ahead of market
trends. As a trusted global adviser, we emphasise the importance of
consulting our experts, as early as possible in the deal cycle, to
help navigate the complexities of M&A transactions ensuring
informed decision-making and the enhanced ability to identify and
mitigate risks using products such as transactional risk
insurance.”
The complete report can be downloaded here.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led
solutions in the areas of people, risk and capital. Leveraging the
global view and local expertise of our colleagues serving 140
countries and markets, we help organizations sharpen their
strategy, enhance organizational resilience, motivate their
workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover
opportunities for sustainable success—and provide perspective that
moves you. Learn more at wtwco.com.
Media Contacts
Sarah BookerSarah.booker@wtwco.com / +44 (0)7917
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