With a surge recorded in both the volumes and total deal values in the UK as well as global transactions in the first 6 months of 2021, confidence has returned amongst acquirers as the M&A industry has demonstrated a buoyant environment post pandemic. This is reinforced by the record-breaking number of completions, resulting in a total deal value of $629.3bn incorporating a sturdy backing from private equity and an increase in overseas transactions.
The technology, financial and healthcare sectors stood out some of the busiest trades in terms of M&A activity. More specifically, $145bn of the total deal value was accredited to the technology sector, with 23% of all deals completed linking to a technology company. Following close behind was the financial sector which cleared $80bn worth of acquisitions in H1 2021, contributing to 13% of the total deal value.
An increase in transactions involving a private equity backer has been another influence on the development of the M&A. The doubling in statistics in comparison to the previous year resulted in a record-breaking first half of this year. Records highlight a notable 67% of private equity deals took place in either the technology, financial or healthcare sectors.
Overall, according to Refinitiv’s Global Mid-Market M&A Review, H1 2021 documented a 59% increase in global transactions, resulting in the most active first six months of a year recorded in over four decades. Q2 2021 in particular showed strong growth, recording an 11% increase on Q1’s total deal values.
With another record of nearly 29,000 deals completions in H1 2021, advancements within the M&A market have been supported by this 30% rise in overall deals, with the UK maintaining interest from both national and international acquirers, with active trade acquirers as well as private equity investors.
On the back of a record breaking year, now is especially an opportune time to consider the value of your business in a buoyant environment and plan your potential exit to take advantage of the favourable market conditions. Our highly experienced team have provided thousands of business valuations and can assist you in realising the value of your company whilst capitalising on the current M&A market. Whether you are considering your 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.