“There has probably never been easier access to capital,” said Brian Salsberg, global head of the integration practice at professional services firm Ernst & Young.
Highly rated U.S. companies raised $817.16 billion in debt in the first six months of the year, down from $1.24 trillion in the prior year period, but still up compared with the first half of 2019, Refinitiv said. Money raised through equity sales also went up.Companies mostly paid in cash, but also used shares, notes and borrowings, according to Dealogic, another data provider.
Deal makers are facing steep asking prices, as high stock markets drive up the valuations of companies. Multiples for transactions involving U.S. companies—calculated by dividing the median enterprise value by earnings before interest, depreciation, tax and amortization—rose to 17.4 times in the first half of the year, compared with 10.5 times in the prior-year period, according to data analyzed by consulting firm Bain & Co.
The growth in special-purpose acquisition companies also is driving M&A volumes higher. There are about 500 SPACs globally, many based in the U.S., that are looking to do deals, according to Refinitiv.