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Dealmakers ring out 2021 as the year of M&A

Matthew Toole
Matthew Toole
Director, Deals Intelligence

Corporate dealmakers let rip in 2021 to seal $5.9trn in M&A activity, up 64 percent on the previous year. The year saw big gains across the market, led by the U.S., the technology sector and turbo-charged by ‘risk-on’ private equity investors and SPACs.


  1. During 2021, an all-time record of $5.9 trillion in over 63,000 mergers and acquisitions was set
  2. Gains in M&A have been spread over the globe, with the U.S. leading the field with deals up by 82 percent
  3. Tech deals comprise one-fifth of the total deal-value after a 71 percent surge during 2021.

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The global M&A market has closed 2021 at an all-time record of $5.9trn in over 63,000 transactions, an annual increase of 64 percent and 24 percent respectively.

The final tally smashes the previous high watermark set in 2015 by almost $1.5trn.

The record also lays to rest M&A’s forgettable year of 2020, when corporate leaders hesitated to commit amid pandemic fears.

The surge in activity was driven by strong gains in the technology sector, and by mid-market deals (between $1bn-5bn), which saw a triple-digit increase on 2020.

In addition, the number of mega deals (those of more than $5bn) surged from 111 last year to 181, pushing up the aggregate value. And while the fourth quarter of 2021 saw some of the heat come out of the market, it still managed to continue a six-quarter streak to register more than $1trn in M&A.

Workspace without limits: How can investment bankers use data to improve speed and accuracy, impress clients and win mandates?

Source: Refinitiv Deals Intelligence, Global Mergers & Acquisitions Review, Q4 2021

Deals Intelligence: Analyse market trends and assess the changing competitive landscape with league tables and reports powered by our leading-edge products for the deal-making community

Anglo-American bullishness

All major regions saw strong gains, led by the U.S., which enjoyed an 82 percent year-on-year uplift to reach $2.6trn.

Europe saw a 46 percent increase to reach $1.4trn, while Asia-Pacific was hot on its heels with a 48 percent increase to reach $1.3trn.

U.S. corporates also dominated the market for overseas acquisitions, accounting for more than $700bn of the $2.1trn cross-border transactions during 2021. Neighbouring Canada came in at a distant second, with $174bn.

In terms of cross-border acquisition targets, the U.S. still topped the leaderboard, this time followed more closely with a strong showing for the UK.

Tech is the largest component of global M&A

The technology sector continued its ascent as the largest component of M&A, seeing a 71 percent increase to reach a record $1.15trn, more than one-fifth of global transaction value.

Technology has been the biggest M&A sector by number of deals for eight years, a lead it has consolidated with a 34 percent increase to 13,768 transactions in 2021.

However, tech deals have declined noticeably since the peak in Q2.

The financial sector also saw big gains, with a 59 percent year-on-year increase to reach a 14-year high, while industrials were up 56 percent to a record $640bn.

Source: Refinitiv Deals Intelligence, Global Mergers & Acquisitions Review, Q4 2021

Deals Intelligence: Analyse market trends and assess the changing competitive landscape with league tables and reports powered by our leading-edge products for the deal-making community

Well-funded buyers

The enthusiasm of private equity and SPACs was a further signal of risk-on appetite and value in the market.

Private equity firms began putting to work their record piles of unspent cash at a record rate, to account for 20 percent of M&A activity, more than making up for their uncharacteristic caution in the first half of 2020.

These financial sponsors accounted for $1.2trn worth of deals in 2021, a 111 percent year-on-year increase and a new record.

Meanwhile, the advance of SPAC listings continued at a staggering pace, with three times the recorded value of 2020, to account for more than one-tenth of the M&A market. While much of the IPO action for special purpose vehicles took place in Q1, an autumn rally suggests the SPAC story may have further to run.

Goldman Sachs retained top spot for worldwide M&A, with a first place ranking in all regions. Meanwhile, 10 independent firms made it into the top 25 global financial advisers, led by Evercore, Lazard and Rothschild.

Workspace without limits: How can investment bankers use data to improve speed and accuracy, impress clients and win mandates?