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Laxman Pai, Opalesque Asia: The value of mergers and acquisitions (M&A) rebounded to an all-time high of $5.9 trillion in 2021, despite an unstable environment brought by the persistence of the COVID-19 pandemic and other issues, said a study.
According to the Bain & Company's (Bain) fourth annual M&A report, corporate dealmakers raced to acquire transformative capabilities and scale rapidly amid soaring valuations in 2021, after a lackluster 2020.
In a white-hot market, valuation multiples hit an all-time high of 15.4 times enterprise value/EBITDA. Tech assets, in particular, decoupled from the broader M&A market, with multiples at 25 times. Similarly, the healthcare industry saw its asset prices soar, with median multiples at 20 times.
Despite the high prices, new research suggests an optimistic outlook for deal activity in 2022. Bain's global survey of more than 280 executives shows a full 89% anticipate their own deal activity will stay the same or increase this year.
The environment for deal-making remains fundamentally attractive, and a well-balanced mix of market signals suggests the strategic M&A market will continue to be robust, it said.
While corporate-led deals grew by 47% in 2021, deals involving financial investors, special purpose acquisition companies (SPACs), and venture capital (VC) firms grew by over 100%.
M&A practitioners cite talent retention as a leading driver of M&A deal success, second only to having a clear deal the...................... To view our full article Click here
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