The Importance of Adopting Proactive Corporate M&A Strategies in Today's Environment

The past few years, especially 2020, 2021 have seen a historical level of activity in M&A, IPOs and private fundraising. Increased fiscal stimulus, low interest rates, and the prospect of a bounce back helped turbo-charge this activity. The markets’ comeback from the initial COVID dip in early 2020 was strong. We have witnessed record deals being closed, and with so much dry powder in the hands of investors, it has been a great time to gain VC and PE backing.

However, the era of low interest rates and growing economic activity are behind us, at least for a while to come. The world economy is now dealing with multiple challenges including high inflation, high interest rates, increased taxes, greater regulation, global supply chain issues and geopolitical conflicts, resulting in a bear market and a stagnant economy.

This change is having and will have further consequences on the fundraising market. Investors may focus more on maintaining and growing their portfolio companies rather than pushing to invest more. For many companies, we will probably witness a change of priorities, from growing to surviving.

While M&A will slow down, it will not come to a halt. Instead, this new landscape will change M&A drivers. The industries and business that will benefit and lose in this new climate is not exactly clear yet. However, given the latest developments, we are likely to see trends related to industry consolidation, M&A-driven growth and distressed M&A. We may see companies looking at M&A as a driver of external, inorganic growth, if struggling to grow internally. Moreover, many companies have accumulated cash in the past few years, which puts them in an excellent position to go hunting for external growth opportunities.

But finding the right strategic buy is no mean feat, especially if one wishes to act before their competitors. Internal corporate M&A teams may not have the in-house capabilities, including the teams and the tools to find the right targets. Having a dedicated corporate development (M&A) team is costly. Moreover, corporate M&A teams may not have the budget to subscribe to the same data vendors as investment funds do.

In this environment, corporate M&A teams cannot afford to rely on M&A advisors to source deals for them. Corporate M&A teams must be quick, opportunistic and identify ideal target companies before their competitors.

At SEALK, we are confident in our ability to solve this challenge for in-house corporate M&A teams. Our intelligent SaaS platform, dedicated to deal sourcing effectively replaces the need for large M&A teams and bypasses the need to subscribe to multiple data vendors. Our platform aggregates all the world’s companies’ data into one platform, and adds a layer of intelligence, to allow you to screen hot markets, surface companies and gain access to personal recommendations.

SEALK is the tool you need if you wish to act fast and be opportunistic, in this unprecedented environment. Gain time, find companies before your competitors, screen niche markets and obtain personal recommendations with Sealk!