$1.74 Trillion spent on M&A Deals involving US companies during the first half of 2021
Several factors have contributed to an increase in M&A activity during the first six months of 2021. Emergency fund raising during the pandemic in 2020 resulted in many Chief Financial Officers experiencing a surplus of funds as reported in Wall Street Journal’s CFO report. The WSJ author, Nina Trentmann, further describes that -
“U.S. companies are cash-rich thanks to last year’s emergency fundraising rounds and strong earnings in recent quarters, providing chief financial officers with money to fill gaps in their portfolios.”
Having navigated the pandemic, CFOs are now looking to the future to meet investor’s high expectations for growth. Acquisitions can help accelerate how they fill operational gaps to better compete including access to new assets, markets, services and technologies.
M&A activity can highlight deficiencies in a company's technology portfolio and as a result risk how successful companies can be at integrating processes and systems.
CFOs that expect to participate in M&A deals will benefit by driving modernization of their analytics and FP&A technologies to be better prepared.