Southeast M&A Market Report March 2022
Notable Trends in March 2022
March tends to be a recovery month in terms of deal activity as many deals are pushed through before years end leaving January and February as fall-off months. Southeast M&A activity remained strong in March 2022 with 98 M&A transactions completed relative to 84 deals done in January.
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.
