Strong M&A Activity Predicted Despite Economic Slowdown

Global conflict and economic tensions ― from the Russia-Ukraine war to the disruption of supply chains, rising global inflation and uncertain valuations ― are behind the expectation that economic growth and investment will slow. The expected slowdown has already impacted the size of M&A deals and the length of time the deals are taking to complete. Despite this, strong M&A activity is predicted for the second half of 2022, with 68% of more than 540 global dealmakers saying that they expect global deal volume to rise in the next 12 months. Sectors, where activity is taking place, include technology, media and telecommunications (TMT) as well as industrials, transport and defense. Legal departments need to be well-positioned for a strategic competitive advantage in the face of this predicted activity, as M&A often reveals challenges regarding best practices regarding data retention, data privacy and cyber protection.