The crisis did not stop company acquisitions

By: Trademagazin Date: 2022. 08. 25. 12:53

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Despite the financial and geopolitical difficulties, the international transaction market is standing its ground, which is mostly driven by private equity investments, according to EY’s international study evaluating corporate mergers and acquisitions (M&A).

The crisis did not stop company acquisitions

In the first six months of this year, 2,274 deals totaling $2,200 billion were closed on the corporate M&A market. The number of transactions decreased by 27 percent and their value by 18 percent compared to the previous year (2021), but in the 5 years before the COVID epidemic, compared to the similar period between 2015 and 2019, activity increased significantly (by 35% and 13% respectively ).

This time India closely follows the traditionally active United States ($900 billion) and China ($175 billion) in the ranking of nations. The combined value of transactions in the South Asian country reached 128 billion dollars, with an increase of 215 percent. EY’s analysis shows that investment from China to the United States has fallen from a peak of $27 billion in the first half of 2016 to $1.9 billion today, while North American investment into Europe has fallen from $60 billion to two and a half times over the same period, rose to $149 billion.