Download our Second Quarter 2021 M&A Update here.
The year is shaping up to be a great year for M&A activity, as a number of factors – strong economic growth, record government spending and stimulus, low borrowing rates, and easing inflation worries – are leading to record deal-making. Deal volume during the quarter was approximately double the volume in the second quarter of 2020, and year-to-date volume is 20% higher than the year-to-date period of 2019.
Though there are risks to continued growth, we believe the market will remain strong in the short-term. In addition to the reasons above, the stock market continues to touch new highs, and executives continue to be optimistic. Risks to economic growth include restrictions related to the ongoing COVID-19 pandemic, a resurfacing of inflationary concerns, and any changes to the Federal Reserve’s existing policies.
We are excited to see how the year plays out for Midwest M&A. The second quarter was an improvement over the first in terms of volume, while there are still a number of mega deals that have been announced and are scheduled to close later this year. This is highlighted by Canadian Pacific’s offer to purchase Kansas City Southern.
As always, contact us if you would like to receive information about activity in your specific industry or geography, or if you would like to discuss options for your business.