As the world emerges from the global pandemic and an unprecedented disruption of business, mergers and acquisitions activity has been robust. Companies and investors have been on an unprecedented shopping spree throughout 2021. Some notable brands have changed hands, and many smaller companies are finding themselves attractive targets to be acquired.
According to the Financial Times, the pace of deals in 2021 was very brisk, even throughout the summer. The traditionally slow month of August accounted for roughly $500 billion in M&A deals, up from $289 billion in the same month in 2020 and $275 billion in August 2019.
Reuters reported in August that a yearly record for global M&A deals would be set. By mid-August, the value of announced deals was nearly $3.6 trillion, surpassing the total of $3.59 trillion for the entire year of 2020
Why a Global M&A Boom, and Why Now?
Could Regulations Slow the Momentum?
Is Your Company an Attractive Target?
It’s probable that more notable deals, perhaps even some blockbusters, will be announced in the coming months. And for owners of small businesses, there’s a good possibility that potential buyers will come along looking to land an acquisition.
If you’d be interested in having your business acquired, there are some basic tips. First of all, it’s important to show you have a senior management team with demonstrated success. It’s important to show diversification, both in geography and products. Having virtual locations is always an attractive feature. Have your finances in order and optimize your business. And, with travel coming back, it’s important to circulate again, attend conferences and learn from your peers.