M&A MARKET UPDATE DECEMBER 2021 SE MONTHLY REVIEW
Notable Trends in December 2021
Southeast M&A activity has continued to rebound as the economy further recovers from the Covid-19 pandemic with 104 deals completed in December 2021 totaling $32.9 billion. Debt remains historically cheap, and Private Equity dry powder has remained at record high levels throughout 2021. Additionally, higher stock prices have led to strong financing power for M&A activity. This has been reflected through over half of 2021’s M&A transactions paid purely through stock or a hybrid of cash and stock, up from 40% in 2020.
Lower-middle market Southeast M&A activity has followed a similar trend to the broader market as it continues to rebound as the economy further recovers from the Covid-19 pandemic with 17 deals completed in December 2021 totaling $3.49 billion. Southeast lower-middle market M&A activity has stabled itself out after a drop in September following four months of rising deal counts. As interest rates remain low, monthly deal count in the Southeast should continue to stay steady as we move into 2022.
