Refinitiv have published their latest Global M&A Financial Advisory Review and Emerging Markets M&A Financial Advisory Review for the first nine months of 2021.
Relied upon by the financial deal makers around the world, Refinitiv provide the most widespread resource available for M&A and Capital Market transactions insights and analytics. Their cutting-edge products for the deal making community enable the analysis of the of the current trends in the market, as well as assess the fluctuating competitive environment by building company’s own customer league tables and reports.
As we approach the final quarter of 2021, global investment banking fees have reached a record US$79 billion. Although the debt capital markets saw a slight decline during 2020, overall volumes are still positive and highly elevated. Additionally, with IPO volume running at a record pace, equity capital markets have surged globally by 50%. Meanwhile, targets driven by the US, cross-border deal-making and private equity global M&A progressed onto new figures of US$2.8 trillion during the first half, a figure which rose to US$3.9 trillion as the first eight months concluded. As the year-end approaches, deal making confidence remains high.
The first 9 months of 2021 saw worldwide deal making reach a record US$4.4 trillion, highlighting an increase of 92% compared to levels of the previous year and the strongest opening period for mergers & acquisitions since records began in 1980. Quarter 3 of 2021, which registered US$1.6 trillion in deals, signified the fifth consecutive quarter to surpass US$1 trillion, while ranking as the historically largest quarter for worldwide M&A. By number of worldwide deals, deal making increased 28% compared to figures one year ago.
Private Equity-backed transactions accounted for 19% of the M&A activity in the first 3 quarters of the year. The overall value reached US$839.6 billion, which more than doubled in comparison to the previous period. More than 10,800 private equity backed deals were announced highlighting an increase of 69% compared to last year. Special Purpose Acquisition Companies (SPAC) announced 275 initial business combinations during the first nine months of the 2021, which accumulated to US$545.8 billion or 12% of value.
International M&A activity amounted to US$1.6 trillion during the first 9 months of this year which highlights a significant 99% increased in comparison to a year ago. This has proven to be the strongest opening period for cross-border mergers and acquisitions since records began. The sectors that accounted for 43% of overseas deals during the first 3 quarters of 2021 are technology, industrials and financials, demonstrating a 35% surge from last year.
Reflecting on the statistics of the first nine months, the final quarter of 2021 is forecasted to conclude this financial period on record-breaking grounds. As M&A peaks with cross-border and high value transactions, now evidently highlights a perfect time to consider the value of your business and consider a potential exit in order to take advantage of the current favourable market conditions.
Our highly experienced team provided over 3,100 business valuations last year and can assist you in realising the value of your company. Whether you are considering exit strategy options or exploring another avenue, you can call our team in confidence on 0203 441 2003. Alternatively, you can use our free, online valuation calculator to determine the value of your company.