Creative Deal Structures: Energizing the M&A Market Post-Crisis

Sidley and Mergermarket are pleased to present Creative Deal Structures: Energizing the M&A Market Post-Crisis.

Creative structures have become increasingly important in bridging the gap between sellers’ expectations and buyers’ willingness to pay. Based on interviews with 150 respondents from U.S. corporates and private equity firms, this report analyzes the ways in which M&A is moving forward in spite of the pandemic.

Key findings from this report:

• 63% of respondents who use alternative structures say more of their recent deals have incorporated such mechanisms than has historically been the case. Among private equity firms, the figure was 68%.
• The proportion of private equity firms expecting to be involved in SPAC-related transactions is significantly higher (69%) than among corporates (31%).
• Among respondents likely to use alternative deal structures, energy, mining & utilities, and industrials & chemicals were the sectors where they expected the most use.