2021, a record year for Mergers & Acquisitions

As the post-covid economic environment started to improve, new deals have been sealed in the second half of 2021, while more transactions are announced for the coming months.

M&AAccording to Bain & Company, by the end of 2021, 63 000 Mergers & Acquisitions (M&A) deals across all sectors have been achieved globally with a total value of 5.9 trillion USD. This amount is up 64% from 2020, exceeding the record of 4 420 billion USD reported in 2007.

In addition, the number of mega-deals (valued at more than 5 billion USD) had increased from 111 in 2020 to 181 a year later, driving up the overall value of completions.

This boom period was stimulated by:

  • the economic stimulus measures undertaken by the authorities,
  • the influx of liquidity,
  • the redefinition of the strategic interests of companies (business relocation),
  • legislative tightening,
  • low interest rates,
  • the growth of funds raised,
  • the infatuation with companies exhibiting rapid transformation potential,
  • the wave of asset disposals across all industries, aided by portfolio review processes,
  • the quest for profitability by institutional operators to reinvest and optimize their assets,
  • historical fundraising.

The most active M&A sectors include technology, telecommunications and healthcare.

Particularly targeted by M&A are companies operating in high technology. The value of such transactions is due to increase by 71% in 2021 to reach a record amount of 1 150 billion USD, which is almost one fifth of all M&A transactions worldwide. The number of deals amounts to 13 768, up 34% in one year.

Healthcare is the second largest growth driver in the M&A market. The total value of these transactions will reach 440 billion USD in 2021, up 44% compared to 2020.

The strategic telecommunications sector is also experiencing a significant jump, with the total deal value increasing by 48%.

A remarkable surge in M&A transactions was equally noted in 2021 in the financial sector with a 59% increase in deal volume.

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