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Laxman Pai, Opalesque Asia: The second quarter represented the third straight period in which total announced M&A value surpassed $1 trillion, said a study.
According to a report by S&P Global Market Intelligence, this is the first time the announced deal value exceeded that threshold in three consecutive periods, according to S&P Global Market Intelligence data that dates back to the 1990s.
"It will come as no surprise to those operating in the industry that private capital - with coffers full of dry powder - is among the drivers of a sustained M&A push globally," it said.
Investment bankers remain bullish on the prospects of continued M&A despite regulatory hurdles.
With corporates looking for strategic deals, special purpose acquisition companies on the prowl for targets, and private capital ready to invest at a reasonable clip, regulators have been on the lookout.
SPAC IPOs remain above levels before the 2020 boom, but the value of U.S. deals dipped to $11.70 billion in the second quarter from $91.37 billion in the previous quarter, while the number of deals decreased to 52 from 275. This followed SEC guidance that prompted the vehicles to determine whether warrants they offered to investors were accounted for appropriately on their balance sheets as debt or equity, as well as questions around lofty target company performance projections.
More traditional M&A activity has also been under the regulatory spotlight in both the U.S. and th...................... To view our full article Click here
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