May 2022
Crisis in Ukraine, return of inflation, rise in interest rates, … what will be the consequences on the M&A market ? Franck Laborey, partner at Brugmann Conseil, explains on BFT TV, leading business news channel in France, what the challenges are in the market today.
After the 2020 COVID crisis, the market has been euphoric in 2021 with an exceptional activity. We had not experienced such a level since 2006 ! It is also due to several factors. Initially, companies that were not affected by Covid remained in the same dynamic as in 2020. As for the others, several operations blocked during the health crisis were able to be unblocked. These companies then wanted to catch up !
For 2022, even if fears were already emerging at the end of December 2021 about supply difficulties,
the return of inflation and a rise in rates, the year seemed to start rather well. Since the invasion of Ukraine, however, the economic situation is changing. The uncertainty surrounding the international context, with in particular the downward revision of growth prospects, should push the mergers and acquisitions market to adjust: higher duration of operations, clear differentiation between highly impacted sectors and sectors with little impact or not impacted, decrease in valuation average prices.
What does this mean in the coming months and what support do we offer? The full interview with Franck Laborey can be found here:
