A new report on merger and acquisition (M&A) deals has predicted a 6% increase in the volume of activity worldwide in 2021, after what was described as a “record-breaking” first half of the year (H1).

The prediction came in the 2021 Global Guide to M&A Tax, published by Taxand, a global organisation of independent tax advisory firms.

The guide says that more and bigger M&A deals were recorded in the first six months of 2021 than in any previous first-half period on record.

Taxand says that the increase was due to a number of factors — including low interest rates, pent-up demand after COVID-19 restrictions, and record levels of cash held by companies.

Irish market strong

William Fry LLP is Taxand’s member firm in Ireland, and its head of tax, Sonya Manzor (pictured), said the Irish market’s performance had been “very strong” in 2020. The volume of deals was similar to 2019, but the value of these transactions rose by 14%.

“As dealmakers plan for the second half of 2021, there are signs that the era of extreme uncertainty is drawing to a much-needed close,” she said.

“The gradual global economic recovery from the COVID-19 crisis, coupled with greater geopolitical stability in the form of the UK-EU trade deal, has provided the backdrop for an even more confident Irish M&A market moving through 2021,” she added.