2021 A Record Year for U.S. M&A

The 2021 U.S. M&A market reached historic levels of activity with a 86% increase in aggregate transaction value and a 35% increase in transaction volume year-over-year. Strong balance sheets and corporate earnings coupled with a healthy market backdrop gave boards of directors the confidence to move forward on tactical and strategic opportunities. Importantly, activity was broad, consistent and global with every region, industry and transaction size experiencing heightened levels of action.  

A key driver of this global activity was the financial sponsor community. Driven by record levels of assets and highly accommodative financing markets, financial buyers accounted for more than 23% of the total volume.

Our annual report provides key insights and analysis of 2021’s M&A market, including themes that contributed to the unprecedented volume and size of M&A transactions and key developments to track in 2022.

Report Highlights: 

• $1bn+ transactions made up nearly 80% of total M&A value, the highest since 2016 

• 46% of public acquirer transactions were fully or partially funder with stock, the highest in recent history

• For the second time in the past 11 years, Sponsor premia paid exceeded Strategic premia paid

• Financial sponsor aggregate transaction value was up 168% year-over-year driven by increased average transaction sizes

• De-SPAC transactions reached a record 20%+ of total M&A value and over 570 SPACs are currently seeking acquisitions with over $153bn in equity capital looking to be deployed

As we look ahead to 2022, despite recent market volatility, we are cautiously optimistic that the overall environment will remain conducive to an active M&A market. 

FULL REPORT