On Friday, data from Dealogic had unmasked that the volume of Global M&A (Mergers & Acquisitions) had spiked to a record in 2021, totaling above $5 trillion for the first time while surpassing a prior record of $4.55 trillion registered back in the 2007s. On top of that, according to Refinitiv data, overall value of Merger & Acquisitions in 2021 had reached a whopping $5.8 trillion, up about 64 per cent compared to a year earlier. In factuality, latest Dealogic data came forth as 2021 had witnessed an easy availability of low-rate financing alongside a ballooning equity market, while small- and medium-sized entities appeared to have divested at a breakneck pace amid pandemic associated fiscal fallouts alongside a global-scale supply chain constraint, leading to a boost in merger and acquisitions.
On top of that, followed by the data, analysts were quoted saying that the trend would less likely to be altered over first half of 2022, as a latest surge in pandemic cases across the US and EU had stoked fears of further consolidations in broader market landscape.
Global merger & acquisitions hit record in 2021
In tandem, having been encouraged by a low interest rate alongside a persistent influx of liquidities with US household wealth hovering at a record, mega-cap buyout funds alongside corporate tycoons had sealed a total of 62,193 deals in 2021, which happened to be about 24 per cent up compared to a year earlier.
Besides, the value of mergers & acquisitions in the US had soared to $2.5 trillion last year, while an introduction of a series of stiffer anti-trust regulations seemingly had little or no impacts. US M&A volumes accounted for roughly a 50 per cent of entire global deals.