Compelling signals from a recovering M&A market
07 April 2021
Global M&A Q1 2021 snapshot
Regional and sector breakdown
Virtually all markets show an increase in deal volume. Notable exceptions include the United States (down by 3%) and Eastern Europe (down by 7%). In contrast, deal value shows a remarkable recovery, including a robust 370% in MENA and 160% in the U.S.
The picture is similar from a sector point of view. For the most part, volume is up (except for energy and consumer and retail, where volume is flat, and in real estate where it has declined by 26%). Deal value is up, including:
Life Sciences up 253%
Consumer and Retail up 121%
TMT up 240%
Energy and Infrastructure up 74%
SPAC boom continues
One trend that has grown exponentially since Q3 2020 is Special Purpose Acquisition Companies (SPAC), which raise money in the IPO market, then go looking for a target.
They continue to raise extraordinary amounts of capital for acquiring targets, running at an all-time quarterly and annual record.
However, a key question remains. Can this level of SPAC activity be maintained as competition for assets intensifies?
Overall, the outlook for transactions appears robust, but the lingering economic impact of the pandemic remains a significant concern.