Europe M&A activity remains buoyant with US activity up 30%

US deal activity has continued surpassing pre-pandemic levels, whilst activity reportedly remains “buoyant” in Europe, according to the latest analysis from RSM.

The transaction data in Q4 2021 revealed 4,061 deals were completed by private equity (PE) or corporates in the US, up 30% from deal volumes in Q4 2019.

A total of 2,546 deals were also completed across Europe, up 6% above average levels witnessed throughout 2018 and 2019. RSM said this deal total will increase further as more Q4 2021 deals are announced throughout 2022.

Lee Castledine, RSM UK partner and a member of RSM’s Global Due Diligence leadership team, said: “Deal volumes continue to remain buoyant with high levels of capital available. The appetite from both private equity investors and corporates also remains strong and currently shows no signs of slowing down as we progress into 2022.  

“At present the availability of capital and the push to undertake transactions is more than offsetting issues that might serve to soften demand. There are a number of factors that might undermine confidence in the market and specific sectors in particular, which might dampen deal activity as the year progresses.”

He added: “Nevertheless, at present, deal levels remain high and whilst there are wider factors that could create a wider shock to the M&A market, we expect the M&A advisory and due diligence sector to remain busy and in high demand in H1 2022.”