“We tracked 190 transactions, far out distancing any other year since we began our annual M&A round up in 2004. Before 2021, a stellar year might see 100 closed transactions.
Multiple factors made 2021 a surprisingly strong year for acquisitions:
Buyers with plenty of cash
Financing that was easy to procure
Strong valuations to motivate sellers
Lingering fears capital gains taxes...”
“At the same time, you’ll see deals for civilian focused businesses because of increases in spending from those agencies and especially around health and the environment.
Those expected increases are driving companies to either buy their way onto contracts or into customer sets...”
“While 2021 was a record breaker for mergers and acquisitions, the same market conditions continue in 2022. Our expectation is another year of high-volume activity.
Publicly-traded government contractors have the resources and the need to continue making deals. Private equity firms made more acquisitions than sales in 2021, so that has created a growing pool of targets for the publicly-traded companies. Sellers also seem keen to take advantage of high valuations...” Read the full article here.
Source: Why 2021 was a record year for mergers and acquisitions – By Nick Wakeman, March 30, 2022. Washington Technology.
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