Second Quarter 2022 Mergers & Acquisition Update

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M&A activity softened again in the second quarter, driven by a number of factors: geopolitical tension and warfare, continued inflation and supply chain issues, the worst first-half of a year for market performance since 1970, and rising interest rates.
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Roughly 4,570 North American deals were completed during the quarter, for a combined value of nearly $550 billion. Volume remains relatively high to historical levels, while overall value matched that of a 12-quarter average.
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On a positive note, valuation levels rebounded sharply from a weak first quarter. This is encouraging to see, as it suggests we’re not entering a firesale-type of environment and that buyers are still willing to pay up for quality companies.
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As we approach the end of the third quarter, we are hopeful that easing fuel prices and grain shipments commencing out of Ukraine will soften inflation, and we hope the market recovering from mid-June lows will increase investor confidence. Yet, we are acutely aware of the persisting challenges ahead.

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