US M&A Market Report March 2022
Notable Trends in March 2022
U.S M&A activity rebounded slight in March from February with 514 deals completed in the month of March. However, March continued February’s trend of the lowest number of deals completed in a month since June of 2020. Capital invested took a small dip comparative to February. 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 8.5% annually in the United States, the Federal Reserve is expected to raise interest rates again in May and June of this year with more to follow as the year moves on. 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.
