The M&A market roared in 2021, bolstered by increasing (and perhaps excessive) optimism about COVID-19 vaccine rollouts, pent-up demand, copious liquidity and significant macroeconomic support. While 2020 was a tale of two cities, with a first chapter marked by a significant number of unsigned pending deals put on hold, and signed transactions broken off because of the uncertainty and impact of COVID-19, dealmakers in 2021 carried forward the dynamic rhythm of the second chapter of 2020 enthusiastically and without pause. In 2021, U.S. deal volume reached $2.6 trillion, a jump of 90% over 2020 and nearly 50% over 2019, while aggregate global deal volume exceeded $6.1 trillion. Companies that had spent 2020 focused on stabilizing operations had increased the appetite for ambitious transactions. Whether the ongoing pandemic, fiscal, monetary and political pressure and uncertainty, and a more difficult regulatory environment around the globe will dampen the deal landscape in 2022 remains to be seen. As this chapter goes to press in early 2022, the M&A market remains robust, including two very large transactions in the online gaming space – Microsoft’s acquisition of Activision Blizzard and Take-Two Interactive Software’s purchase of Zynga – signaling that strategic players remain willing to pursue big and important deals
