RE:RE:RE:US$10 Billion is a typical estimate for a M&A in 2023According to Drug Discovery October 4, 2023 - An analysis of the pharma and biotech M&A data from 2018 to early October 2023 deal activity jumped to an average of roughly 6 deals per month. For context, when interest rates ranged from 1.4% to 2.4% from 2018 to 2019, the industry averaged roughly 2 deals per month. While there was a relative increase in M&A volume during the historically low-interest period of 2020 to August 2022 when rates dropped to as low as 0.05%, the average number of deals per month then — 3.3 — is still markedly lower than recent levels.
One possibility is that higher interest rates are spurring companies to accelerate M&A activities before rates climb even higher, fueling a short-term spike in M&A deals.
Since July 2023, the average transaction size begun a modest uptick, possibly setting the stage for a similar trend in the coming months.