M&A Activity takes a Huge Drop

Mergers and acquisitions have been setting records for years. Last year — 2021 — was a record year and predictions for this year were for more of the same. Sometimes predictions aren’t all that accurate.

Or so says Reagan Consulting.

It released a report last week on the number of deals for the first nine months of 2022 and found the number dropped dramatically from 2021. In the first nine months there were 369 deals. That’s down 42% from the 977 a year ago.

High interest rates and the prospect of more hikes in the future pushed some highly leveraged buyers into standby mode. Another issue is the huge number of deals that were done last year.

As noted earlier, there were 977 of them.

However, half of that 977 deals were done by private, equity-backed brokers. Interest rates are very important to them as they invest in deals.

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