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Laxman Pai, Opalesque Asia: 2021 saw 99 deals above $5 billion - a steep increase compared to 54 in 2020, 59 in 2019, and 70 in 2018, said a study.
The 2022 M&A outlook report by PwC revealed that plentiful funding for deals and the lure of profits in alternative investments drove the busiest asset management mergers & acquisitions environment since 2000.
Megadeals - transactions of at least $5 billion - understandably generate headlines, and 2021 saw the most US megadeal announcements ever, including large private equity (PE) buyouts, the report said. But just as notable is the significant increase in volume among "not-quite-mega" deals.
Compared with a typical year of about 400 to 500 deals of $500 million to $5 billion in value, more than 900 such transactions were announced in 2021. Those numbers suggest that many companies are navigating the competition for assets in different ways, including through smaller and midsized transactions that could still deliver solid proceeds and ultimately be scaled for larger deals.
"While consolidation and growing scale remain motivations behind many deals, we're also seeing companies in virtually every industry aggressively pursue transformation through deals. Some reevaluations of business models and deal strategies are being driven by shifting customer demands as a result of the COVID-19 pandemic, while other companies aim to improve resilience amid such threats as cyber-attacks and supply chain disruption,&qu...................... To view our full article Click here
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