M&As offer attractive opportunities for all investors. Target companies often see their valuations rise substantially: as soon as the offer becomes firm, the price of the target company is no longer driven by fundamentals, but rather by the news flow surrounding the deal. Considering that historically, over 90% of announced deals effectively take place, M&As offer compelling investment opportunities, with a high probability of success. This is where ‘Risk Arbitrage’ strategies come into play: their objective is to offer low market exposure while selecting the deals displaying the strongest likelihood of success.
Heavily impacted at the beginning of the Covid crisis in March 2020, M&A activity has since recovered with deals spanning all continents. Is now the right time to invest? How does our investment team successfully analyse all the deals that are announced?
Fabienne Cretin-Fumeron, Head of Risk Arbitrage and Stéphane Dieudonné, Senior Fund Manager, answer any questions you may have.