Middle East M&A and IPO activity to remain attractive despite global economic uncertainty | ZAWYA MENA Edition:
Global deal-making will continue the downward trajectory in 2020 amid worldwide economic uncertainty but the Middle East and North America will remain relative bright spots, a new report showed.
Merger and Acquisition (M&A) value worldwide is projected to drop to $2.1 trillion in 2020, a decline of 25 percent compared to $2.8 trillion in 2019, according to the Global Transactions Forecast report by Baker McKenzie in association with Oxford Economics. The report forecasts Initial Public Offering (IPO) proceeds to decline by approximately 23.7 percent to $116 billion in 2020 from $152 billion in 2019.
“Make no mistake — deals are getting done, but the current slowdown is inevitable considering the continuing uncertainty around trade and regulation,” said Ai Ai Wong, Chair of Baker McKenzie’s Global Transactional Group. “We know that around the world, there are many investors and companies with capital on the sidelines, waiting to move forward with domestic and cross-border deals.”
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