The outbreak of COVID-19 in the first quarter of 2020 inflicted an unprecedented shock on the global economy. In the first half of the year, growth stalled, the US unemployment rate reached its highest level since the Great Depression, and economic uncertainty spiked. M&A activity largely followed suit, with transaction volume and value plunging from the first to the second quarters of 2020 before recovering in the second half of the year, as companies identified strategic acquisition opportunities to augment organic growth and respond to changes in business practices resulting from the pandemic.

The number of M&A transactions worldwide declined by 6%, from 48,613 deals in 2019 to 45,507 in 2020. Global M&A deal value decreased by 15%, from $3.35 trillion to $2.83 trillion. The average deal size in 2020 was $62.3 million, down 10% from the $68.9 million in 2019.