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Global M&A Insights: Rethinking priorities as transactions boom

Our Q3 report looks in depth at the new issues confronting investors in a booming market, including Silicon Valley’s influence on global technology transactions, the increasingly urgent sustainability agenda, post-pandemic trends in M&A litigation and new market dynamics in Japan.

Report highlights

Global M&A transactions market continues to experience extraordinary growth across regions and sectors, with the market recording a fifth consecutive quarter where total deal values exceeded USD1 trillion
Technology transactions continue to dominate the M&A market, with Silicon Valley companies continuing to influence changing trends across the industry globally
ESG/sustainability issues rise to the top of the boardroom agenda, promising to make a significant and long-term impact on M&A markets
The expected surge of Covid-related M&A litigation has not materialised, yet we could see a rise in disputes as deal activity recovers and prices rise
Japan’s transaction market becomes a popular destination for out and inbound investments driven by changing attitudes and economic priorities

92%
increase in global deal value
28%
increase in global deal volume
99%
increase global value of cross-border deals
99%
increase in USD5bn+ megadeals

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Transaction value soars across deal types and regions

While transaction data for the first half of 2021 show an extraordinarily strong year-on-year growth in worldwide deal value, they do compare with the quietest period for transactions in a decade as Covid-19 took hold last spring.

Dramatic pause in global Special Purpose Acquisition Companies (SPACs) clouds the outlook

The extraordinary boom in U.S. SPAC formations continued in Q1 but declined steeply from April onwards. Few believe the trend is over, but a period of greater uncertainty seems likely. SPACs are now making their presence felt in both Europe and Asia, although not at the pace seen in the U.S.

Changed work culture raises M&A challenges

The Covid-19 pandemic has, arguably, done more to change the culture of work than any other event in recent history, presenting all businesses but particularly those looking to restructure or those contemplating acquisitions, with a new set of legal and organisational challenges.

A rise in hydrogen-related M&A activity globally

As international pressure mounts for urgent responses to climate change, there are signs that, after several false dawns, hydrogen is finally emerging as a key component in the transition from fossil fuels.