M&A MARKET UPDATE FEBRUARY 2022 U.S MONTHLY REVIEW
Notable Trends in February 2022
U.S M&A activity took a dip in deal count in February 2022 dropping to 426 deals completed in comparison to January. However, capital invested more than doubled from the previous month. Companies are using M&A to try and maintain competitive advantages within their respective markets as industry trends transformed under Covid-19.
As we move into 2022, we are unlikely to see a wholesale reversal of the positive economic rebound in 2021. However, with the consumer price index rising 7% annually in the United States, the Federal Reserve intends to begin raising interest rates as soon as April 2022. These inevitable interest rate hikes will increase the cost of capital, reducing the buying power of firms. Therefore, it’s expected that the M&A market will remain strong through the first half of 2022, slowing in pace in the latter half of the year.
