Goldman Sachs says it is seeing a “superbloom” of M&A activity as corporations rethink their businesses after the pandemic

  • Date: 15-Jun-2021
  • Source: Business Insider
  • Sector:Economy
  • Country:Middle East
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Goldman Sachs says it is seeing a “superbloom” of M&A activity as corporations rethink their businesses after the pandemic

Global head of M&A structuring, David Dubner, said in a " " interview on Monday that he is seeing a "Superbloom" of mergers and acquisitions (M&A) as well as separation activity this year. The Goldman Sachs exec said that management teams are assessing and reimagining their businesses as the US continues to emerge from the pandemic. According to Dubner, larger companies are engaging in M&A and separation activity that "is multiples of what it was" during previous hot periods in 2002 and 2009. A released on June 2 backs up Dubner's comments. According to the report, global mergers and acquisitions totaled a record $2.4 trillion in the first six months of 2021, up 158% from the same period last year. Dubner said that a portion of this jump is a result of larger companies being more diversified than in the past which has some thinking about "simplification" and even what Dubner calls "pure-playification." He also said that there are more multinational companies than in the past that are looking for global scale and using M&A to achieve their ambitions. Many companies are also using spin-offs and Reverse Morris Trust Transactions ("effectively a spin-off combined with a merger") to avoid costly