S&P Global and 451 Research Predict Continued M&A Acceleration in 2022

by | Feb 10, 2022 | Blog

Mergers and acquisitions aren’t slowing down anytime soon. As M&A activities accelerate, early and comprehensive due diligence is increasingly important. According to their recent report, S&P Global and 451 Research say that M&A deals will match or outpace last year’s record performance. Tech transactions that occurred in 2021 exceeded $1.2 trillion alone. 

However, one industry is breaking apart from the pack: information security

79% believe that the cybersecurity industry will witness an uptick in acquisitions. This comes after closing out a record year of information security deals totaling $74 billion. 

With these numbers trending positively, there is always a concern that they will fall. With this in mind, survey respondents were asked to weigh in on four concerns that could lead to macroeconomic disruptions in the industry. The main category that respondents are concerned about is inflation. Many believe that pressure from inflation will undermine the technology industry’s willingness to strike M&A deals. Surprisingly, the one factor that was left out of respondent’s answers was COVID-19. Around two-thirds of respondents believe that the ongoing pandemic will have no impact on companies moving ahead with mergers and acquisitions. 

As you review the report and contemplate the record merger and acquisition activity expected in 2022, it’s important to remember the value of comprehensive due diligence to properly identify risks associated with cybersecurity, company reputation, and key personnel. 

Nisos’ Zero Touch Diligence® allows acquirers to begin a diligence evaluation much earlier in the process, often before a Letter of Intent has been signed, and without access to the target’s applications and networks. It allows organizations to expand the scope of the investigation beyond traditional cyber to include reputational risk and key personnel risk. Just as importantly, it can be completed in a more timely fashion than traditional cyber diligence – often within a period of two weeks or less.

To read more on expected trends for the year ahead, download the full report here.

To learn more about Nisos Investment Zero Touch Diligence, download the brief here.