The number of merger and acquisition deals in the accounts receivable management industry nearly doubled in the first quarter of 2021, compared with the same period last year, and the total deal value nearly increased by 20%, according to data released by Corporate Advisory Solutions, which released its comprehensive quarterly market insights newsletter last week.
There were 19 M&A deals totaling $593 million in the ARM space during the first quarter, up from 10 deals worth $500 million during the same period last year. Overall, across the three industries tracked by CAS — ARM, Revenue Cycle Management, and Customer Relationship Management — the number of deals and value of those transactions in the first quarter was at its highest mark in more than three years. Those three sectors had 96 teals worth $8.2 billion during the first three months of the year, up from 22 deals worth $1.7 billion during the same period last year.
The COVID-19 pandemic has not dampened appetite for acquisitions, which remained robust for the second consecutive quarter. After an initial downturn during the second quarter of last year when the pandemic really took hold in the United States, the number of M&A deals has grown consistently and significantly since then, CAS noted.
The continued economic bookends of higher unemployment rates and economic stimulus and income tax refunds will continue to foster a “good news, bad news” dynamic for the ARM industry, while the specter of increased regulatory and enforcement activity could also play a role in spurring M&A activity. The “technological transformation” that is underway in the ARM industry is expected to continue and will also help attract new capital in the form of investments and acquisitions while also requiring companies to adapt to changing business trends on yet another level.