2021 was a record year for the global M & A market: Lex Mundi

Lex Mundi, a global network of independent law firms, has released the latest edition of its annual report on key trends in global M & A (M & A).

The Global M & A Trends Report 2022 draws on insights gathered from practitioners in 66 jurisdictions. Despite the pandemic, 2021 saw a record year of trading activity. The report provides a breakdown of each region through an analysis of M & A trading activity across 7 to 13 sectors and concludes that 2022 should be expected for further unprecedented global growth.

The pandemic continued to impact the broader market and M & A trading terms during 2021, but the impact diminished from the previous year. In almost every region, practitioners have agreed that due diligence is of paramount importance in trading in 2021. 73% of practitioners in the Middle East and Africa, 62% of practitioners in Asia, and 42% of practitioners in Latin America, the Caribbean and Europe all cite it as an important focus of their legal counsel.

Meanwhile, according to 54% of North American respondents, the transaction structure was highlighted as the most pressing concern. The regulatory environment remains a top priority for practitioners, and antitrust legislation stands out for Asian respondents. Forty-six percent of respondents agreed that it was at the forefront. Regarding national security / foreign investment, 37% of all European respondents agreed that it was an important concern when trading in 2021.

The report also showed trading activity across sectors such as market and financial services, technology and software, life sciences and healthcare. In all regions, the majority of member law firms expect to witness both public and private M & A trading activities during 2022.

Jenny Carlson, Head of North America within Rex Mundy’s Global Markets Team, said: “”Global trading flows continue to be affected by pandemics, but many other factors appear to outweigh them in practitioner concerns. In particular, it is a restriction on foreign investment in the increasingly polarized world.

“Nevertheless, we have found that the mood is significantly bullish and optimistic about further growth across most jurisdictions and markets, both public and private. We hope that the insights will help the team better understand and prepare for future challenges and opportunities. “

Meanwhile, the Middle East also recorded strong M & A activity in 665 transactions in 2021, up 51% from the 439 witnessed in 2020, a recent study by law firm Baker McKenzie revealed.

read: M & A activities in the Middle East will increase to 51% in 2021