Despite the ongoing volatile market conditions and the challenges posed by inflation, companies are actively discussing about mergers and acquisitions (M&A). Companies are looking to leverage M&A opportunities to enhance their market position, gain access to new technologies and markets, and remain competitive in today’s dynamic business landscape, reveals the study of companies’ annual reports and earnings call transcripts in 2022 by GlobalData, a leading data and analytics company.

GlobalData’s “Company Filings Analytics – Trends & Signals Annual Report 2022,” reveals that healthcare, technology, aerospace & defence industries were more active than others in discussing M&A opportunities. An analysis of the Company Filings Analytics Database shows that some of the companies seeking value-enhancing M&A opportunities inlcude Tenet Healthcare, Insight Enterprises, QinetiQ Group, OptimizeRx, and Bird Global among others.

Misa Singh, Business Fundamentals Analyst at GlobalData, comments: “M&A’s goal is not just to increase income but also to find new perspectives regarding businesses and product innovations. For instance, Tenet Healthcare plans to invest approximately $250 million in ambulatory M&A each year. The company added 45 new centres to its portfolio in 2022 through M&A.”

Technology company Insight Enterprises acquired Hanu Software Solutions and believed that this will strengthen its service capabilities as a cloud solutions provider and expand its presence in India. Bird Global acquired Bird Canada’s micromobility operation in the automobile industry, strengthening its market leadership in North America with new profitable Canadian markets.

QinetiQ Group says that its acquisitions Newman & Spurr Consultancy Limited (NSC) and Naimuri are producing over 20% year-on-year revenue growth. While medical company OptimizeRx acquired EvinceMed to expand its breadth of solutions where specialty medications are involved.

Singh Concludes: “M&A activities carry several risks and challenges, if not executed correctly. Nevertheless, companies must be cautious while pursuing M&A activities and conduct thorough due diligence to ensure a successful outcome.”