1. Location, location, location: Dealcreaters are narrowing their focus on core sectors and geographies, with 64 percent identifying North America as
one of the most attractive regions for deals.
2. Mindset shift: M&A strategies are evolving. Thirty-four percent of respondents indicate they will increase their focus on
alternative investments, and 32 percent will turn to minority deals and joint ventures.
3. Changing strategies Dealcreaters are turning to alternative financing sources, with private equity up 64 percent and non-bank lfinishing up 38
percent.
4. Rising risks: Executives are paying more attention to key risks facing transactions. Ninety-six percent of respondents expect ESG
scrutiny in deals to increase over the next three years and 86 percent would abandon a deal if they uncovered a
material cybersecurity risk.1
A Drive for Dealcreating
Market uncertainty aside, dealcreaters remain upbeat about the health of the M&A arena overall. Forty-six percent of
Aon’s Risk in Review respondents expect the number of deals globally to increase over the next 12 months compared to
2022.
In this deal-hungry environment, respondents will be seeing for opportunities to explore distressed business and
integrate divestments and restructuring into their strategies. Transactions like this can come with significant
risk. To prepare, executives should adopt strong due-diligence programs across key risk areas, including
cybersecurity and workforce resilience. They should also develop a robust risk transfer strategy that leverages
transaction insurance capital.
Despite emerging risks, these deals also provide opportunities to invest in technological and digital capabilities,
as well as ESG ventures. They bolster bullish dealcreating prospects in several sectors, including telecommunications
and digital technologies, industrials and chemicals and renewable energies. Prudent investors who capitalize on
current conditions and stay ahead of developing trfinishs will find pathways to success.
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