Record Eurozone inflation of 9.1%, European Central Bank’s first interest rate hike in 11 years, European gas prices hitting an all-time high and seven months of Russia’s ongoing conflict with Ukraine. 2022 has certainly seen an onslaught of gloomy economic headwinds.
Only a few months ago, it was believed that the acceleration in M&A markets was unlikely to slow down, despite these global events and challenges.
In just 5 years, Miss Group has successfully completed 20 acquisitions, making it one of the world’s fastest growing web hosting groups. Translink Sweden has been there from the start, stewarding Miss Group through this unrivalled growth surge. Now, Miss Group is on track to reach €100 million turnover and a 45% EBITDA margin within the next 12 months. What’s the secret to scaling so quickly? Fredrik Ullberg, Partner at Anecta AB in Sweden, a member of the Translink Corporate Finance group, says it all comes down to strategy.
In 2021, M&A transactions in the transport and logistics sector totalled US$220 billion, with 322 deals over US$50 million done. Incidents like the six-day-long Suez Canal blockage highlighted the pivotal role the sector plays, elevating logistics from being seen as a support function to being recognised as essential to world trade. Right now, M&A activity is booming, primarily driven by government and industry responses to the pandemic, as well as accelerated automation, digitalisation, and regionalisation trends.
Since 2021, Atos – one of the world’s largest TMT (Technology, Media, and Telecom) companies – has lost three-quarters of its stock market value, after ten years of fast-paced acquisitions. The global group is now following in IBM’s footsteps and splitting into two listed entities: Atos, which will prioritise the ‘old,’ such as managed infrastructure- and professional services; and Evidian, which will be future-focused on digital transformation, big data and cybersecurity. We believe this is a cautionary tale for other incumbents using acquisitions to accrue new capabilities quickly – cultures don’t integrate easily.
What will healthcare look like in 2050? Will life expectancy be significantly longer? Will there be a slow, predictable shifting of the burden of disease, or will this accelerate in radical and surprising ways? Will the globalised world mean we experience similar disease patterns and, importantly, will the sector be able to apply nimble and agile technologies to address the needs? A new report by Translink Corporate Finance in partnership with The Institute for Futures Research at Stellenbosch Business School (IFR) explores the possible futures for healthcare by 2050 and the impacts on M&A.
What will the cars of the future look like? Could they run on cold fusion? Will vehicles even exist, or will they be replaced by travel via the Metaverse? For now, there are many horses running the race to carry the automotive industry into its next big growth phase. And electrification seems like the safest bet, even if it’s a ‘stop gap’ to something greater. What this all means? The automotive sector has emerged from its sluggish state and is entering a new period of prolonged cyclical reinvention. This bodes well for M&A activity, especially for innovative new entrants.
The food industry is experiencing seismic change and with it, consolidation has become a strategic priority for many food-focused companies the world over. McDonalds is investing millions in the metaverse. The world’s food security is threatened by the longstanding conflict between Russia and the Ukraine. Food inflation is placing financial strain on populations everywhere. And consumers are choosing foods for reasons beyond sustenance.
Cross-border M&A activity in the IT sector will continue to boom for years to come. Given the scale of market growth and the formidable pace of technological evolution, investors are seeking to acquire competitors with the competencies they need – there’s a cutthroat ‘buy it before it kills you’ approach. New players are entering the scene in growing numbers. Indeed, starting an IT business can be capital expenditure light and start-ups tend to grow fast. Now, the first so-called unicorns are set to be sold or exit their financial sponsors. It will be fascinating to see if they deliver, and the inevitable impact this has.
In 2021, there were over 4000 deals done in the healthcare sector globally (up 23% from 2020), making it one of the most active industries in terms of M&A. There’s no doubt the sector is booming, fuelled, in part, by Covid-19 and significant global megatrends. Here, Rebecca Zhu, Managing Director at Translink Corporate Finance China, and Jens Borelli-Kjær, Partner at Translink Corporate Finance Denmark, unpack trends, growth drivers, and the implications for M&A.
In the year 2050, what will the world of industrials and manufacturing look like? Will existing players still dominate the market or will new entrants with dynamic offers win market share? A new report by Translink Corporate Finance in partnership with the Institute of Futures Research (IFR), explores four plausible futures that will pose distinctive opportunities and threats to businesses in the industrials and manufacturing sector. But according to Henrik Schrøder, Head of Translink Industrials Group and Managing Partner: Translink Denmark, the future starts today.
