Refinitiv: Global M&A Up 24 Pct Over 2020, Total Value Is $3.6T

Merger and acquisition (M&A) activity is at an all-time high, with the global value sitting at a record-shattering $3.6 trillion, Reuters reported.

The numbers have been steadily building on the beginning of the year’s record-breaking streak of deals, according to Reuters. Low interest rates and high stock prices have also greased the wheels.

Refinitiv data found that there has been $3.6 trillion total in pending and completed deals thus far in the year, per Reuters. That has already surpassed the full-year amount of $3.59 trillion from last year. There have been 35,128 deals announced, a 24 percent jump since last year.

The tech sector has led the way on deals as it usually does, with $799 billion in deals in total from that sector, Reuters reported. Financial services M&A volumes accounted for $442 billion.

Dealmaking from large buyout firms and corporates that have stockpiled large cash reserves could bolster the amount of M&A activity, according to Reuters. Matthew Barbieri, partner in charge at Wiss & Company, said the coming tax increases on capital transactions will have further effects.

“You as a seller are facing the fact that if you wait until the new tax legislation is passed, and if it does pass in the manner in which it is being presented now, you are taking a ~20 precent hit on your net transaction value,” said Barbieri, Reuters reported.

In the first six months of the year, business spent $1.74 trillion on M&A. That number was the highest in 40 years at the time and represented a sizable increase from the same time last year.

Read more: Businesses Spend $1.74T On M&A In First Half Of ’21, Break 40 Year Record

Companies are looking at ways to quickly amass more growth for their businesses amid investor pressure. Many of them are choosing acquisitions as the way to do that, eschewing more organic growth. And companies are striking more deals than usual that are worth over $1 billion, including deals done by Microsoft and AT&T.