- December 23, 2021
- Posted by: Stratford Team
- Category: Business
Companies are gearing up for another banner year for deal making.
Mergers and acquisitions hit a record in 2021, fueled by low interest rates, a surge in private-equity fundraising and companies’ efforts to respond to broader shifts in their industries. The total value of global M&A transactions through Dec. 21 was $5.7 trillion, up 64% from the same period a year before, according to Refinitiv, a data provider. The total number of deals, meanwhile, rose 22% during that period, to 59,748, Refinitiv said.
Many of the factors that propelled deal making in 2021 are expected to continue into next year, M&A lawyers and advisers said. But policy changes on the horizon could damp the pace of corporate tie-ups, including interest-rate increases from the Federal Reserve—which could increase companies’ financing costs—as well as increased scrutiny from antitrust regulators. It also remains to be seen if new variants of Covid-19,…
