M&A Facts 'n Stats: Mar 2015

Some Interesting M&A Data

Provided by Mergermarket

A recent report by White & Case and Mergermarket, US M&A 2014-2015: Full steam ahead reveals deal activity was at its highest level for five years, with companies announcing 4,795 deals worth US$1.4 trillion in 2014, a 22% increase in volume and a 57% rise in value on 2013 figures.

The return of the megadeal in the United States has served as a key pillar of the M&A rebound and suggests that US dealmakers have the conviction to pursue deals and make large, long-term strategic plays once again. Some key findings from the report include:

  • In the first half of 2014, the share price of acquiring firms was more likely to increase than decrease on deal announcement - the first time this has happened since 2012 - however, the pattern reversed in H2 2014, pointing to a reduction in confidence among investors towards M&A.
  • The Mergermarket Heat Chart*, which predicts sector deal flow in the US M&A market by tracking “companies for sale” stories, shows that TMT, Pharma and Industrials will rule the roost in 2015.
  • There were 871 private equity buyouts in 2014, up by 14% on 2013. However, the proportion of M&A value accounted for by buyouts fell to a five year low.
  • High valuations have fostered a strong exit environment, with private equity exit values reaching their highest level for five years, and volumes increasing 31% year on year.