M&A Industry Trends: 2021 Mid-year Update
Demand for technological capabilities and capital availability is intensifying competition among buyers, raising the stakes on value-creating deals. The foundation of deal-making in 2021 continues to focus on recalibrating strategy and accelerating the adoption of technology in the wake of COVID-19.
- The first six months of 2021 saw record levels of dealmaking both in terms of deal volumes and values, notably setting a record growth of global deal values in excess of US$1 trillion per quarter over the past 12 months
- Special purpose acquisition companies (SPACs) possess up to a half trillion dollars in total buying power over the next two years
- Private equity was involved in 38% of all deals in the first half of 2021
This abundance of capital is likely to shape the M&A landscape well into 2022—and may put corporate, PE and SPAC buyers on a collision course as they compete to acquire technology, capabilities, and other sources of advantage. The competitiveness of the market reflects a growing understanding among business leaders that creating value requires more than cost-cutting—and they are willing to pay more for revenue synergies that fuel long-term growth.
Status of SPACs that went public (January 2019 - June 2021)
As uncertainties have lifted, business leaders are confident in a strong economic recovery, as macroeconomic indicators, including positive GDP rates and high consumer price index (CPI) rates, promise growth—further whetting the appetite for mergers and acquisitions (M&A).
