Global dealmaking is set to maintain the hot steps next year, after a historic year for mergers and acquisition activities (M & A) which are mostly driven by the availability of easy financing and stock market booming.
Global M & A volume reached $ 5 trillion for the first time, comfortably surpassing a previous record of $ 4.55 trillion in 2007, Data Dalogic showed.
The overall value of M & A was established at $ 5.8 trillion in 2021, up 64 percent from the previous year, according to refinitiv.
Flush with cash and driven by the stock market assessment, large purchasing funds, corporations and investors reached 62,193 transactions in 2021, up 24 percent from the previous year’s period, because the records of all time falling for every month.
The investment banker said they expected the hustle and bustle to proceed to next year, despite rising interest rates that towered.
Higher interest rates increase borrowing costs, which can slow down M & A activities Cheap, which in turn devoted him after a big target.
The United States leads the way for M & A, accounting is almost half of the global volume – the value of M & A almost doubled to $ 2.5 trillion in 2021, although the antitrust environment was harder under the Biden government.
The biggest agreement this year includes the AT & T Inc.
agreement of $ 43 billion to combine the media business with Discovery Inc.; Purchase of $ 34 billion leverage from Medline Industries Inc.; Takeover of Canadian Pacific $ 31 billion from Kansas City Southern; And the farewell of Behemoth Behemoth America Electric Co.
and Johnson & Johnson.
According to a dealmaker survey and advisory by Grant Thornton LLP, more than two-thirds of participants believe the volume of agreement will grow even though there are challenges caused by regulations and pandemics.
Offers in sectors such as technology, finance, industry and energy contributed most of the M & A volume.
Purchases supported by private equity companies more than doubled this year to cross the $ 1 trillion sign for the first time, according to refinitiv data.
Apart from the slowdown in the activity in the second half, dealmaking involving the company acquisition of special objectives further increases the volume of M & A in 2021.
The SPAC agreement accounts for around 10 percent of M & A’s global volume and adds a few billion dollars for overall.