Pace of M&A Activity in August Fastest Since November 2021

In just the first 12 days of August, the dollar value of mergers and acquisitions (M&A) announced in North America is higher than that recorded during the entire month of July.

The $63 billion worth of announced transactions — originating from 613 proposed M&A announced through Friday (Aug. 12) — is also the highest total seen during the first 12 days of a month since November 2021, Bloomberg reported, citing data compiled by the company.

A rally in the stock market that began in July, a reduction in the volatility of financial assets and a desire of companies to diversify in order to cope with an economic downturn contributed to the leap in M&A activity, per the report.

“In the event that we are going into a recession, companies will need to continue to grow their top lines and making acquisitions could help accomplish that goal,” Westchester Capital Management Co-Chief Investment Officer Roy Behren told Bloomberg. “Or if we end up in a soft landing, companies want to be prepared for that too.”

At the same time, M&A volume is down this year compared to last year — a year in which the volume was at a record high, the report stated.

In M&A for payments companies, the mood was comparatively upbeat during the first half of 2022 compared to those in other sectors, Payroc Executive Vice President of M&A Nick Oberman told PYMNTS in a July 25 interview.

Read more: M&A in Payments Sector Down but Not Out

For example, Payroc’s buying spree most recently embraced Worldnet, cementing the payment services provider’s (PSP’s) position among independent software vendors (ISVs) and giving its platform new capabilities for embedded payments as that form takes off.

“What’s driving each and every one of our acquisitions has been carefully identifying that sales distribution that would quickly benefit from Payroc’s technology and product, putting those sales channels in a stronger and more competitive position,” Oberman said at the time.