Worldwide deal making activities are expected to pass a previous all-time high record of $4.8 trillion in 2015, with nearly $6 trillion in combined deal values for 2021 and previous year volumes totaling $3.6 trillion, respectively. This is due in large part to the environment that many businesses remain in, with financing remaining very cheap and pandemic recovery driving the macroeconomics behind this new record quantity. The “pent up” dry powder that both equity firms and strategic buyers have held onto the past couple of years is now being deployed, with minimal signs of regression at this point in time.
Industries such as the technology, financial services, industrials, and energy sectors make up for most of the deal volumes. According to a September survey from KPMG, 86% of CEO’s say that inorganic growth methods like M&A will be their primary form of growth over the next few years as organic growth has been harder to come by. Deal activity is expected to remain high even into Q1 of 2022, with interest rates most likely not being altered for the next several quarters.
Read more here: https://www.cnbc.com/2021/10/12/kpmg-on-global-ma-market-hitting-record-6-trillion-in-2021.html
