Insight

KPMG survey shows appetite for corporate M&A

A June KPMG survey

Alex Miller

Alex Miller

Principal, Strategy Lead, KPMG US

+1 312-665-1325

Sean Stephens

Sean Stephens

Advisory Managing Director, Strategy, KPMG US

+1 212-954-6722

With the economic upheaval created by the response to the coronavirus threat and the volatility of equity markets, it looked like M&A activity would be depressed for a long time. Indeed, deal volume fell sharply in the first half of 2020. But a June KPMG survey of approximately 150 corporate development professionals indicates that corporate dealmakers will not be on the sidelines much longer.

According to the respondents, the current economic disruption actually may make it easier for public companies to complete transactions. Some 60 percent of respondents said that the unsettled environment has reduced Wall Street expectations, providing “cover” to make investments. More than half of those respondents say that they are currently planning acquisitions.

Almost half of all respondents say they are actively pursuing M&A, but they are focusing on smaller acquisitions and bolt-ons. The survey respondents did not seem motivated by potential bargains: more than 70 percent say they are looking for stronger performing assets.

These are just some of the highlights of the research.