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GLOBAL STATISTICAL UPDATE – XBMA Quarterly Review for First Quarter 2021

Published on: April 28 2021
Contributed by: Matthew T. Carpenter and Caley M. Petrucci, Co-Editors, XBMA Review

Executive Summary/Highlights

  • Global M&A volume reached record highs in Q1 2021. As Covid-19 vaccines became more widely available and economies reopened, M&A volume reached the largest first quarter deal volume on record since records started being kept in 1980.
  • In Q1 2021, global M&A volume was US$1.34 trillion, a 1.7% increase from Q4 2020 (US$1.32 trillion) and a substantial 93% increase from Q1 2020 (US$694 billion). If the current levels of M&A activity continue over the balance of the year, global M&A volume in 2021 is projected to reach US$5.4 trillion, an increase of approximately 45% from 2020 (US$3.7 trillion).
  • Cross-border M&A volume was US$466 billion in Q1 2021, the highest first-quarter volume of cross-border M&A since Q1 2007 (US$536 billion). Cross-border transactions represented half of the 10 largest deals of 2021, and the US$31 billion cross-border acquisition of GE Capital Aviation Services (U.S.) by AerCap (Ireland) was the largest M&A transaction of Q1 2021.
  • U.S. M&A volume was especially robust in Q1 2021, reaching US$671 billion in Q1 2021, an increase of 12% from Q4 2020 (US$601 billion) and 158% from Q1 2020 (US$260 billion). Q1 2021 U.S. M&A volume was the highest quarterly U.S. M&A volume since Q2 2007 (US$749 billion) and 102% higher than the average first-quarter volume of U.S. M&A over the last 10 years (US$332 billion).
  • In an era of accelerating adoption of virtual communication, distance learning and remote employment, the High Technology sector continued to lead all other major industry sectors in M&A volume in the last 12 months, representing US$889 billion of global M&A volume and accounting for over 20% of global M&A volume in the aggregate. In Q1 2021, 21% of total global M&A volume was attributable to the High Technology sector (US$274 billion).
  • M&A involving special purpose acquisition companies (“SPACs”) continued to be robust in Q1 2021, accounting for US$295 billion of global M&A volume in Q1 2021, an increase of 125% from Q4 2020 (US$131 billion) and 530% from Q1 2020 (US$47 billion), and contributing 22% of the quarter’s total global M&A volume.

Click here to see the Review.

Editors' Note: The XBMA Review is published on a quarterly basis in order to facilitate a deeper understanding of trends and developments. In order to facilitate meaningful comparisons, the XBMA Review has utilized generally consistent metrics and sources of data since inception. We welcome feedback and suggestions for improving the XBMA Review or for interpreting the data.

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