The Deloitte Global M&A Index Q4 2015
2016: Opportunities amidst divergence
This is the latest Deloitte Global M&A Index report published by the Deloitte Global M&A Services Team. This Report is a forward-looking indicator that forecasts future global M&A deal volumes and identifies the factors influencing conditions for deal making.
Key points highlighted in this edition include:
- We are expecting 2015 to end with over $4 trillion worth of deals making it the highest for deal values since 2007. However, on a last-twelve-months (LTM) basis, there was a slowdown in the volume of transactions in the second half of 2015.
- Cross-border deals are a major feature of this M&A wave. More than $1 trillion worth of cross-border deals have been announced so far this year, of which a third were in the vibrant deal corridor between North America and Europe. In addition, new corridors have started emerging between Asia and Europe, led by China and Japan, and are likely to continue in 2016.
- The threat of “disruptive innovation” is impacting the traditional products and markets of many financial services companies. In response they are launching venture funds to seek and invest in new sources of innovation, which could lead to smaller, but more strategic deals.
- As this record-breaking year (i.e. 2015) draws to a close, concerns over global growth are back, along with divergence in economic and monetary policies. Looking ahead, we expect such divergence to create M&A opportunities and define deal making in 2016.