Riding The M&A Waves

M&A activity is bouncing back strongly in the aftermath of COVID-19, with new opportunities emerging amid the new normal. But challenges remain, with travel restrictions and economic nationalism muddying the waters.

In September 2020, the Financial Times reported that a strong resurgence in mergers and acquisitions (M&A) activity had fuelled the busiest summer for deals for 30 years, with private equity firms putting record amounts of dry powder to good use.

According to figures from Refinitiv, the combined value of $5bn-plus deals globally rose to $456bn in the three months to September, making it the busiest third quarter on record as bankers and executives reshaped and restructured companies in the aftermath of the COVID-19 outbreak. The most prolific month was September, when 73% year-on-year growth saw total deal value reach $391bn.