Bridgeford expects another brisk year for strategic corporate transactions in 2022.
Despite the obvious headwinds, Bridgeford saw record years for both financing and merger and acquisition transactions, by almost every metric, in 2020 and 2021. During this period, Bridgeford represented clients in closing over $220 million in acquisitions and $45 million in early-stage financings.
With the pandemic easing, the pipeline of 2022 activity appears likely to continue apace at all stages of the business lifecycle: formation, financing, growth, and eventual sale.
And we aren’t the only ones expecting an active 2022. Morgan Stanley is predicting another record year as well with its global head of M&A saying, “All the key elements that made the 2021 M&A market so strong are largely in place.”
Deloitte agrees. A recent poll of executives found that an impressive 92% of respondents expect deal volume to increase or stay the same over the next 12 months.
Particularly encouraging for M&A activity for the coming year is private equity fundraising, led by some of the largest funds.
While volume is expected to rise, the types of deals could change this year. Bloomberg Businessweek is forecasting that instead of focusing on competitors, the acquisitions may be focused more on companies that bolster their supply chains, after a year where supply chain issues were rampant.
Still, there are some potential warning signs. Inflation is on the rise and interest rate hikes could be in the offing. Either or both in combination might result in a softening in equity markets.
Bridgeford professionals are ready to assist your small or mid-sized company in 2022 when it comes to navigating a strategic transaction with practical, actionable, clear and exceptional legal guidance.
Schedule a consultation today by calling 470.588.0420 or emailing us at firstname.lastname@example.org to learn how Bridgeford can help grow your business.