Interest Rates, Ukraine, and M&A Impacts — SRS Acquiom Barometer

The U.S. Federal Reserve recently raised interest rates to slow the effects of rampant inflation. This is occurring in the context of the Russian invasion of Ukraine and a rapid global response. What impacts will these economic and geopolitical actions have on M&A activity in the coming year?

SRS Acquiom recently surveyed M&A professionals for their views. This new SRS Acquiom Barometer™ survey, conducted between March 17–21, 2022, reveals divided opinions on the impacts of these economic and geopolitical effects M&A activity. Respondents provided insights on the following topics:

• What impact, if any, will inflation rates have on M&A activity in 2022?
• The Federal Reserve recently raised interest rates. What effect, if any, do you believe this rate increase will have on deal volume in 2022?
• What types of transactions are most likely to be impacted by rate increases in 2022?
• What impact, if any, will higher interest rates have on the availability of capital for M&A activity in 2022?
• In your own business, which (if any) of these actions are you currently taking, or planning to take in the next three months, with respect to anticipated rate increases?
• What impact, if any, will the rate increase have on the use of escrows in M&A transactions in 2022?
• What impact, if any, will the Russian invasion of Ukraine have on M&A volume in 2022?
• What impact, if any, will the Russian invasion of Ukraine have on M&A deal size in 2022?
• Do you think the invasion of Ukraine will impact M&A deal terms for companies that do not have material connections with Russia or Ukraine?
• Which M&A deal terms do you think will be impacted?
• What impact, if any, will the sanctions imposed in connection with the Russian invasion of Ukraine have on M&A deal volume in 2022?
• What impact, if any, will removal of Russian banks from SWIFT have on M&A deal volume in 2022?

Download the M&A Impacts report above for the full details.