Sectors to watch
All businesses have had to make adjustments over the last year and while we are keen to see these return to former heights, some sectors have been able to seize the opportunity and flourish in the midst of these changes. In the M&A market, these are our sectors to watch:
What was initially considered by some to be a COVID-19 bump - to the gaming industry’s advantage - is now apparent as a shift of gaming into the mainstream, with more people gaming than ever before and particular growth in the over 55s. The significant growth looks set to continue into 2021 and beyond.
While we may all be keen to return to offices and face-to-face meetings over the coming months, it is clear remote working won’t be going anywhere and corporate travel will decrease long term – which are good signs for the software space as digital capability becomes ever more important. The consolidation of this space looks set to develop.
The recession of 2020 had an undeniable impact on consumer brands but many have utilised technology to continue to drive marketing and build customer relationships. We expect the pent-up demand from the past year will drive growth as the world hopes to return to some form of normality.
For us, this makes the gaming, software and consumer brands sectors our ones to watch over the next 12 months. While the money remains available, and the silence continues on changes to capital gains tax, we expect activity levels in the M&A market to continue to thrive.