Cross-Border Bulletin: Global M&A Transactions Impacting The U.S.

Cross-Border Bulletin

Last year was a record year for cross-border M&A activity. Global cross-border M&A volumes increased 78% from 2020 to $1.26 trillion, continuing the momentum that began in 2H 2020. Both
strategics and sponsors, flush with cash and optimistic about their post-pandemic prospects, were active in M&A.

While the dealmaking environment continues to be favorable, the biggest question remains… “how long will this global M&A boom last?”. Anticipated interest rate hikes, both in the U.S. and Europe, threaten to temper M&A by increasing borrowing costs for would-be acquirors. For cross-border M&A, increased antitrust and protectionist regulations, especially those concerning technology, may thwart potential cross-border transactions. And of course, the threat of ongoing disruptions from COVID-19 continues to pose challenges.

Despite these headwinds, there are several signs for optimism as we look forward to 2022. Financial sponsors have amassed over $2 trillion in dry powder, a formidable war chest to pursue M&A. There are also 589 SPACs in the U.S. currently searching for acquisitions. With an average remaining timeline of ~12 months to get a deal done, SPACs will continue to be part of the M&A story in 2022. And despite the ongoing disruptions from COVID-19, corporations are earning record profits and sitting on large cash balances, much of which could be redeployed into acquisitions.

We are pleased to release Volume IX of our Cross-Border Bulletin. This semiannual Solomon Partners report highlights key trends and drivers impacting global M&A. Themes discussed in this issue include:

  • U.S. Cross-Border M&A Activity Surges in 2021
  • Digital Disruption Accelerates Tech M&A in India
  • Private Equity Sets Its Sights On Corporate Britain
  • Country Focus: United Arab Emirates
  • Sector Focus: Quantum Computing

Please click below to read the full report. The Cross-Border Bulletin is authored by Jeff Jacobs, Head of M&A Execution and Cross-Border, and Chris Moynihan.

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