(16.02.2022) Mergers and acquisitions in Switzerland hit a record high last year. An M&A study by the auditing and consulting firm KPMG shows that the number of transactions with Swiss involvement rose from 363 to 604 between 2020 and 2021, the highest in a decade.
While mergers and acquisitions (M&A) activity nearly doubled last year, the volume of these transactions almost tripled from USD 63 billion (around CHF 58.2 billion) to USD 170 billion (CHF 157.2 billion). Low interest rates, high market liquidity and "positive market sentiment" drove this record growth.
The most significant growth was in the pharmaceutical and Life Sciences sectors. The total transaction volume in these sectors increased ninefold in one year: from USD 6 billion (approximately CHF 5.5 billion) to USD 56 billion (CHF 51.8 billion). The number of mergers and acquisitions also increased from 42 to 87. Four of the ten largest transactions in 2021 were in these sectors.
Rapid digitalization of the Swiss economy boosted transactions in the TMT (technology, media and telecommunications) sector. Of the 604 M&A transactions last year, 105 involved companies in these sectors, accounting for around USD 20 billion (or around CHF 18.5 billion).
The Swiss are extremely active in M&A activities: in 2021, 46% (279 cases) of all transactions were made by Swiss companies in the Swiss market while the acquisition of Swiss companies by foreign companies accounted for just 23%.
Last modification 16.02.2022
