BancaMarch | The M&A market accelerated in August and 2021 is on track for a record year. M&A deals worth almost $4 trillion have been completed since the beginning of the year.
In August, a typically quiet month, $500 billion worth of deals were closed globally, close to double the same month last year and the $275 billion of 2019. The increase in corporate deals has been fuelled by low interest rates, high global liquidity and rising corporate profits, which have prompted many boards of directors to attempt new deals.
Of the almost 400,000 deals announced, a large number were of significant size – in excess of $10 billion – and included record numbers of international deals. By sector, the technology sector led the way, with one fifth of the total global activity consisting of 8,730 deals for a total amount of $830 billion. Deals in the financial services and real estate sectors have also experienced significant growth.