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2021 Looming as the Biggest Year For M&A Ever

By Generational Equity

12/06/2021

As we have discussed before, 2021 is shaping up to be a record year for dealmakers throughout the world, but especially in North America.

This prediction was reinforced by Refinitiv in a recent article:

Here are some key points from the publication:

Globally, 2021 is the strongest opening nine months of M&A since records began. In the U.S. alone, target M&A has surged 139 percent to US$2trn.

Private equity deals have more than doubled to hit record US$839.6bn, and the number of deals was up by 65 percent. Favored sectors included technology, healthcare, and retail.

Deal-making fell off a cliff in the first half of 2020, as corporate acquirers hesitated in the face of the COVID-19 pandemic. But the bounce-back has more than compensated, with Q3 2021 the largest on record and the fifth consecutive quarter to top US$1trn.

While all major regions have seen strong growth and set all-time records, the U.S. is way ahead of the pack with a 139 percent year-on-year increase, to account for 45 percent of the global market. Meanwhile, Europe and Asia-Pacific were hardly slouches, surging 69 percent and 53 percent, respectively.

Data like this is truly remarkable given how badly the economy was impacted in 2020. But as Refinitiv points out, the bounce-back has been incredible and 2021 is expected to break all records for transactions.

Generational is experiencing the same trends. YTD our closed deals are pacing at 60% over the prior year – and 2020 ended up being our fourth consecutive record year!

Only two issues are on the horizon that may impact this seller’s market:

Our research indicates that we will still have a window to get clients through this seller’s market, but that may change in 2023 as the impact of these changes become apparent and deal demand slows down a bit.

So act now by attending a Generational Equity Growth and Exit Planning conference. While there you will learn about the timing of this seller’s market and how you can participate in it. Please use the following links to learn more:

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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