In spite of major geopolitical and financial headwinds in recent times, global mergers and acquisitions (M&A) activity in 1H2022 has been resilient, according to Ernst & Young’s (EY) analysis of M&A data.
During the period, there were a total of 2,274 deals with a total value of US$2.02 trillion (2.7 trillion), which represents an 18% y-o-y increase in volume and a 27% drop y-o-y by value. M&A activity is also up compared to the average of the last M&A cycle from 2015 to 2019, with value growth of 35% and volume growth of 13%.
According to analysis by EY, the nature of cross-border deals is changing to reflect geopolitical tensions on the world stage. While cross-border transactions levels in 1H2022 have decreased to 24% in 2022 as compared to an average of 30% from 2015 to 2019, the share of cross-border deals among closely affiliated countries has increased to 51% in 2022 compared to an average of 42% from 2015-2019.