The 2022 M&A Report: Dealmaking Remains Active as Dark Clouds Form
Even in the toughest M&A climate since 2008-09, activity has merely reverted to historical averages, and buyers and sellers who adapt, notably through digital and ESG-driven deals, can still create value.
Summary
Inflation, rising rates and recession fears ended the post-lockdown buying spree, yet through July 2022 about 22,000 deals worth $1.73 trillion kept activity near pre-pandemic averages, with volume down 13% and value down 32% on 2021. Megadeals and private equity, backed by record dry powder, stayed strong while SPAC deals collapsed. Sellers' price expectations lag lower valuations, but carve-outs, activists and sector rebounds support deals, and ESG-motivated green deals have doubled in 20 years.
Editor's opinion
Despite the toughest M&A climate since 2008, savvy acquirers and sellers can still create value, as downturns often offer good deal opportunities.
Key concepts
M&A market cycle · Downturn dealmaking · Green dealmaking · SPACs · Carve-outs