Global M&A Flash Note: Surge in Deals in Q4 2020 a Prelude to Strong 2021

Deal announcements strongly surged in the last two weeks of December 2020, not only surpassing the number struck during the same period in a strong 2019, but also beating the 20-year average by more than 60%. While H1 2020 was impacted by the onset of the pandemic, deal announcements picked up in H2 2020. Announcements further picked up towards the end of the year based on positive news such as the rollout of the vaccine in several countries and the conclusion of Brexit and the US elections. With the worse of the pandemic behind them, dealmakers have a fertile environment in 2021 with easy financing, political certainty, and high valuations. SPACs that raised funds in 2020 as well as PE firms sitting on significant dry powder are expected to be active in the new year.