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PwC: Top 10 global trends driving M&A activity

Business Chief takes a closer look at a report from PwC on merger and acquisition trends in industrial manufacturing and automotive sectors

Janet Brice
|Nov 20|magazine3 min read

Looking beyond survival: opportunities to strengthen supply chains and accelerate digital transformation through mergers and acquisitions (M&A) in industrial manufacturing and automotive (IM&M) sectors, is the focus of a global trends report from Pricewaterhouse Coopers (PwC). 

While the challenging economic situation brought on by COVID-19 has slowed M&A activity, areas of opportunity for dealmakers to create substantial value still exist, states the consultation report.

The automotive industry had to adapt to the new normal triggered by COVID-19. “A drop in demand and disrupted supply chains means OEMs’ immediate priority will be to reconnect production and supply chains,” outlines PwC. 

Closures and delays during the pandemic affected all areas of industrial manufacturing. The need to be agile was amplified when many manufacturers switched production lines to make ventilator components or personal protective equipment (PPE).

“M&A remains uniquely positioned to bring transformation at a speed which other management functions struggle to deliver,” said Nicola Anzivino, Global Industrial Manufacturing and Automotive Deals Leader, PwC Italy.

COVID-19 will continue to leave deep tracks across IM&A sectors in the second half of 2020 and into 2021. “In this uncertain context, we recommend dealmakers consider the following steps as a framework for value preservation and creation,” comment PwC.