Return to site

M&A Special Report: The Great Deal Reset

via Chief Executive

Could declining volumes and values really pave the way for a true buyer’s market? Here’s what to watch—and what to do—in these interesting times.

From a mergers and acquisitions standpoint, it’s easy to look at last year and think this one has been a bust. But last year was like no other year: Deal volumes and values skyrocketed to record levels. Fueled by near-zero interest rates and federal stimulus money, public companies amassed a war chest of cheap capital to chase risky assets, strategies and yield.

...“One cannot look at 2021 as a bellwether of normal deal volume,” says John Potter, partner and U.S. deals sector lead at audit and advisory firm PwC. “Although deal volume is down in the first half of 2022, it’s coming down from the highest watermark in history. We’re actually experiencing M&A deal volume on par with the past 20 years, with about 25,000 deals concluding in first-half 2022.”