Acquisition market to rise by 33% early 2021

There is movement on the merger and acquisition front. In January and February 2021, the global M&A market was worth $484.5 billion, up 33% from last year.

According to asset manager Capital Group, companies are now more confident about the future, and they are also sitting on a record amount of cash.


The number of SPACs (Special Purpose Acquisition Companies are companies with no operational activity and which are set up through an IPO specifically for the purpose of making acquisitions) has also risen very sharply in 2020. This indicates that the number of acquisitions in the pipeline is exceptionally high. "SPACs typically have two years to find a deal or the money is returned," says Wendt of the Capital Group.


A first SPAC, also called a “blancocheque” company, was announced in early 2021 in Belgium with the aim of raising 100 million euros.

Source: iexprofs.nl

Picture: Unsplash.com - Chronis Yan