Vibrant Mergers & Acquisitions Market Continues to Surge – June 2021
Optimism abounds in the 2021 M&A market, priming it for high activity. Companies, across all industries, are looking to grow as a result of increasing competition, record amounts of cash sitting on corporate balance sheets, and low interest rates. The demand for high-quality businesses is strong, and there has never been a better time to enter the market.
![](https://investmentgradeadvisory.com/wp-content/uploads/2021/06/q1-deal-closes.png)
As the North American economy continued to rebound in Q1, so too did M&A activity with over 5,388 deals closing in the quarter. This was a 26% growth from Q1 2020. Additionally, there were 11,394 deals recorded globally in Q1.
![](https://investmentgradeadvisory.com/wp-content/uploads/2021/06/MA-Market-value.png)
The above chart represents M&A activity by value Q1 2020 – Q1 2021 for North America. The upward trend in volume is a direct reflection of the current, positive market conditions. The expectation is for this upward trend to continue throughout 2021.
![](https://investmentgradeadvisory.com/wp-content/uploads/2021/06/NA-MA.png)
In Q1 alone there were over 5,621 deals announced targeting companies in the U.S. and Canada. This was the second highest first quarter total this century. Currently, the North American M&A market makes up 53% of the world M&A market.
![](https://investmentgradeadvisory.com/wp-content/uploads/2021/06/q1-sectors.png)
The Industrials sector undertook the most deals in 2021 with 939 deals. While the technology, media, and telecom industry led the way in terms of valuation at $204bn. With low interest rates and potential tax changes, pent up demand for acquisitions is surging this year.
Sources: S&P Global, White & Case, Pitchbook