What do our professional, executive and financial risks team consider as the top 5 things to watch in the M&A market?
Lots of dealsH2 2020 was the highest second half for global M&A since H2 2015 with $2.23tn of deals announced so far. Q3 and Q4 2020 saw record levels of Reps and Warranties Insurance (RWI) being placed across the market and we expect strong deal flow to continue in 2021 which is backed up by insights from leading investment banks.
Watch-out for healthcare and tech dealsUnsurprisingly the healthcare and tech sectors are booming right now. The pandemic has drawn into focus our reliance on both sectors and we expect these to be areas for growth next year.
Increase in cross-border M&AWe are seeing an increase in cross border activity with many US clients looking at value for money assets in both UK and Europe. Clients are also becoming accustomed to virtual due diligence and are therefore getting back on track with cross border deals.
Increased premiumsAs claims are filtering through market leaders, they have increased rates by 20%. We expect this to filter through the wider market as many underwriters renew capacity in 2021.
Lingering effects of COVIDWhilst we may be turning a corner in 2021, we still expect to see an increase in claims off the back of companies that are in trouble and also an increase in distressed deals as the effect of the pandemic is still worked through.
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Professional, Executive & Financial Risks