Global M&A projects break records: $ 5 million
It was the year of the closing of transactions, with worldwide merger and acquisition (M&A) activity totaling $ 5.63 trillion and shattering records set 15 years ago, Reuters reported on Monday (December 21st). citing data from Dealogic.
M&A volumes increased 63% on December 16. The latest record was set in 2007 with transactions totaling $ 4.42 trillion, the data showed. Last year, the global pandemic pushed M&A transactions to their lowest level in three years.
“Corporate balance sheets are incredibly healthy, resting on $ 2 trillion in liquidity in the United States alone – and access to capital remains widely available at historically low costs,” Chris Roop, co -Head of mergers and acquisitions in North America at JP Morgan.
See also: Why the pandemic is a ‘black swan’ that will boost M&A payments
Transactions in the United States reached $ 2.61 trillion, Europe reached $ 1.26 trillion, and Asia-Pacific reached $ 1.27 trillion, according to Dealogic data. Technology and healthcare mergers and acquisitions led the way, which is typical in most years.
Firms have raised funds from stocks and bonds, while strong stock markets have given large companies the ability to issue their own stocks as the currency of acquisition. Corporate profits were up, the economy was rebounding, and CEOs were confident they would make deals.
“Strong stock markets are a key driver of mergers and acquisitions. When stock prices are high, it usually equates to a positive economic outlook and high CEO confidence,” Tom Miles, co-head of CEOs, told Reuters. mergers and acquisitions for the Americas at Morgan Stanley.
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Private equity deals hit a record $ 985.2 billion, according to Dealogic, thanks to an abundance of easy financing options.
“Investors are deploying liquidity at an unprecedented rate, which means that, on a global basis, asset valuations have reached historic levels,” said Luigi de Vecchi, chairman of the banking capital markets board for the ‘Europe, the Middle East and Africa at Citigroup. exit.
“The question is whether the prices paid now will continue to make sense over time,” he added.
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