US M&A Market Report May 2022
There were 534 deals completed in May of 2022. Deal count YoY is lower for Q1 2022 than Q1 2021. Capital invested took a small dip comparative to April. Companies are using M&A to try and maintain competitive advantages within their respective markets as industry trends transformed under Covid-19.
As we’ve moved into the first portion of Q2, some investors have viewed the market uncertainty to close deals a more reasonable valuations in comparison to 2021. High-growth stocks have tumbled under fear of higher interest rates leading to an increase in discount rates. This would in turn drag down valuations seen over the past year and further stifle M&A activity going forward. The Fed plans for five more interest rate hikes in 2022 in hopes to curve rampant inflation in the United States.