PwC's Deals Sector Leader John Potter and other partners discuss the deals outlook for the rest of 2021.
2020 was a challenge to individuals and businesses alike, as both contended with disruptions and hardships ushered in by COVID-19. As companies focused on addressing immediate concerns of the pandemic, deals took a back seat. But while the M&A market softened in the first half of 2020, the second half experienced a strong bounceback. This uptick in activity carried into the first half of 2021 as the appetite for dealmaking remained strong. Although the future remains uncertain, we expect M&A activity to continue along this recent trajectory as companies continue to emerge from crisis mode during the pandemic and turn their focus to growth.
The metals industry continues to see a recovery in M&A activity from lows experienced at the onset of the pandemic. Both deal volume and value in the first half of 2021 exceeded the same period in 2020, and matched or exceeded the second half of 2020. In the US, the future appears more promising as the rollout of vaccines continues and pandemic-related social restrictions loosen. We expect M&A activity to continue its positive course through 2021 with the metals sector following suit. The adoption of new legislation and foreign trade policies, growth in consumer confidence and the overall recovery of the global economy could be particularly impactful on the metals industry and associated deals activity.
“While 2020 was a tumultuous year, M&A activity was resilient and growth has continued into 2021. As the world progresses toward a post-pandemic life, a sustained and robust M&A market looks to remain on the horizon.”
Metals Deals Leader, PwC US
US TAS Market Leader, Midwest Market, PwC US