As the global economy continues to recover into the third year of the COVID-19 pandemic, the market for M&A is maintaining its upward momentum, with no signs of slowing in 2022.
Baker Tilly’s annual M&A market update, produced in conjunction with M&A intelligence firm, Mergermarket, revealed a remarkable 77 percent increase in the annual global cross-border deal value in 2021, despite dealmakers facing continual macro uncertainties throughout the year.
More than half of the respondents (53 percent) in our annual outlook said mid-market deals would drive global M&A in the year ahead – and 2021’s totals are rapidly turning this prediction into a reality.
Mid-market deals accounted for 31% of global transactions in 2021, and with dealmakers’ sights set on mid-cap deals to fast-track growth, this figure is likely to maintain its upward climb.
Baker Tilly Corporate Finance Asia Pacific Lead and Singapore Deal Advisory practice leader, Adrian Cheow says “Asia Pacific was the top geography by M&A deal volume in 2021, although the M&A volumes were down slightly compared to 2020. Deal values, by contrast, did register a year-on-year increase, collectively worth US$1.35trn, 39% higher than in 2020. After a record-breaking year for M&A in 2021, the increased volatility in the financial markets, continued disruptions in global supply, rising inflation and increased uncertainty may introduce delays in deals getting done. Even if the pace slows from 2021, I still believe there will be a strong appetite for dealmaking from strategic and private equity buyers”
Key highlights include:
- Global M&A value in 2021: US5.9 trillion
- Global M&A volume in 2021: 34,128 deals
- 77% increase in annual global cross-border deal value
- 5% increase in annual global cross-border deal volume
- 6% increase in mid-market deals in 2021 compared to 2020
- North America top geography by M&A deal value in 2021
- Asia Pacific top geography by M&A deal volume in 2021
- Tech M&A accounted for 33% of deal value and 36% of deal volume in 2021
- 69% increase in mega deals in 2021
The full report drills down into the details of last year’s M&A markets and explores whether 2022 has what it takes to match one of the biggest years on record.
DISCLAIMER: All opinions, conclusions, or recommendations in this article are reasonably held by Baker Tilly at the time of compilation but are subject to change without notice to you. Whilst every effort has been made to ensure the accuracy of the contents in this article, the information in this article is not designed to address any particular circumstance, individual or entity. Users should not act upon it without seeking professional advice relevant to the particular situation. We will not accept liability for any loss or damage suffered by any person directly or indirectly through reliance upon the information contained in this article.
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