Why M&As are back with a bang

The release of pent-up demand for corporate consolidation has resulted in an acquisition spree that, experts believe, has the potential to last well into next year

The Covid crisis has been one of the most disruptive periods for business in living memory. But where there is disruption there is opportunity, which has taken the form of a corporate consolidation boom. Research by Refinitiv has found that global M&A activity in the first six months of 2021 was worth £2tn – the highest half-yearly total the company has ever recorded.

David Dubner, head of M&A structuring at Goldman Sachs, has called this phenomenon a “super-bloom”. He reports that corporate boards around the world have been taking the chance to reassess their firms’ strategic priorities while “emerging positively from what is, hopefully, a once-in-a-generation pandemic”.

Helen James, corporate finance partner at London chartered accountancy firm HW Fisher, has seen many M&A deals involving businesses worth between £10m and £50m in recent months. She reports that 2021 is shaping up to be “possibly the busiest year for acquisitions I’ve ever seen – and I’ve been doing this for 15 years”.