Interest rate increases, inflation, employee shortages, conflict in the former USSR, COVID-19… In many years, any one or two of these could have put a damper on the number of businesses sold. However, business sales continue at a fevered pace. Last year, global M&A transactions totaled $5.8 trillion, 48% above record.
What is different this year?
Supply and demand. There are more buyers looking for business acquisitions than sellers. Additionally, there is more money set aside for investment than before.
Strong lending. Fed hikes notwithstanding, interest rates are still quite low. Money is cheap and available, and lenders are funding a larger portion of each transaction.
