- Global trade, supply chains seen as top M&A disruptors in the next 12 months
- AI in M&A tools are top area of operational focus next year
Global Dealmakers Extending Timelines in Historic Election Year, Datasite Survey Finds
Laura Powers
Datasite
212-367-6168
Laura.powers@datasite.com
Nicholas Koulermos
5W Public Relations
646-843-1812
Datasite@5WPR.com
Mergers and acquisitions (M&A) professionals are extending transaction timelines in response to concerns over potential regulatory changes stemming from global elections, according to the results of a new survey by Datasite, a leading SaaS platform used by enterprises globally to execute complex, strategic projects.
The survey of more than 620 global M&A professionals in the US, UK, France and Germany shows that over 45% of global dealmakers extended their timelines this year to accommodate potential election-related disruptions, including regulatory changes. Additionally, 81% of dealmakers surveyed said they are very or somewhat concerned about the impact of national elections on global M&A activity in the next 12 months, citing increased trade tensions and global interdependent supply chains as the top factors to most likely disrupt activity.
“With a record share of the world’s population voting this year, there are implications for economic and market performance that add another layer of complexity to M&A transactions,” said Rusty Wiley, President and CEO of Datasite. “Global dealmakers are placing a greater emphasis on the quality of a deal. Buyers are seeking deeper insights and greater disclosures from sellers, reflecting a more discerning approach, where thoroughness is prioritized over haste. That’s why having the right tools to effectively and efficiently manage the deal risks associated with any potential regulatory and geopolitical changes are crucial.”
Most global dealmakers expect risk assessment (65%), followed by regulatory requirements (58%) and diligence management (33%), to be the most challenging parts of the deal process to complete in the next 12 months.
Other key findings from the survey include:
- 80% of global dealmakers said they were very or somewhat concerned about the impact national elections could have on global trade and supply chains in the next 12 months. This was most pronounced among dealmakers in the US (89%) followed the UK and France (81%) and Germany (56%).
- 35% of dealmakers said increased trade tensions and global interdependent supply chains will be the top factor most likely to disrupt M&A activity in the next 12 months. This was most pronounced among dealmakers in the UK (41%), followed by France (40%), Germany (39%) and the US (28%).
- 35% of global dealmakers said valuation analysis and negotiation will be the most important component in getting deals over the finish line in the next 12 months, followed by local market knowledge and connections (24%) and creative deal structures (23%).
- 46% of dealmakers worldwide cited unrealistic expectations around resourcing and bandwidth as the top reason for why a deal fell apart in the last two years, followed by over-confidence in market knowledge and ego clashes (34%).
- 66% of dealmakers across the globe said exploring the use of new AI tools is their top area of operational focus next year, followed by talent recruitment, development and retention (56%) and new research and data tools (53%).
Dealmakers in more than 180 countries make their deals on Datasite, including 74 of the top 100 legal firms and all the top 20 global financial advisory firms. In 2023, Datasite facilitated more than a third of the top 100 global deals, including six of the top 10.
Datasite’s global dealmaker survey spotlights the perspectives of dealmakers around the world on the impacts the 2024 election cycle could have on M&A. The survey was conducted in August 2024 and all respondents answered the same questions.
To view the findings from the survey across regions, please see Datasite Insights. To learn more about Datasite, please visit: www.datasite.com.
About Datasite
Datasite is a leading SaaS platform that is used by enterprises globally to execute complex, strategic projects. Datasite’s innovative products drive workflow automation and efficiencies, while generating unique data insights to empower knowledge workers around the world to succeed across the entire project lifecycle. For more information, visit www.datasite.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20241009653633/en/
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