Goldman Sachs's Freund on Australia's 2022 M&A Outlook

The video discusses the unexpected market activity post-2020, driven by factors like strong equity markets and board confidence, leading to increased M&A activity. It highlights the financial environment in 2022, with potential rate rises and continued volatility. The tech sector's high valuations and strategic acquisitions are examined, along with the growing importance of ESG and energy transition in M&A decisions.

What was one of the main reasons for the M&A deal hiatus in 2020?

• High interest rates

• COVID-19 pandemic

• Strong equity markets

• Increased board confidence

How did strong equity markets influence M&A activities in 2021?

• They reduced asset valuations

• They allowed companies to use shares as deal consideration

• They made debt more expensive

• They decreased board confidence

What is a potential impact of rising interest rates on M&A activities in 2022?

• Increased attractiveness of deals

• Higher asset valuations

• More expensive debt

• Greater board confidence

Which sector experienced strong valuations in 2021, particularly in the US?

• Healthcare

• Manufacturing

• Technology

• Real Estate

What has become an increasingly important part of M&A assessment?

• Board confidence

• ESG factors

• Equity market strength

• Interest rates