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Global M&A volumes expected to rise 9% year on year in Q3 2014

Nearly 18,500 M&A deals worth $1.7 trillion have been announced thus far in 2014 and the Deloitte M&A Index forecasts this to approach 22,500 deals by the end of the third quarter.

The Index predicts 8,350 deals (by volume) in the third quarter of 2014, equivalent to a 9% rise year-on-year and a 6% increase on the second quarter of 2014.

David O’Flanagan, Partner, Corporate Finance, Deloitte Ireland, comments: “Several high-profile withdrawn deals have skewed the public perception of the current M&A market, disguising what has been a steady uptick in global M&A deal volumes.

“The rise in deal volumes is being driven by a boom in US deal making, where despite the severe weather related setback, US companies accounted for 55% of all disclosed deals by value in the second quarter. Europe is a key target for US companies, year to date they have spent $89 billion on European companies and are likely to spend in excess of $150 billion on European deals this year.

“In the first half of 2014, global M&A deal volumes and disclosed deal values have increased year on year in every industry sector except for financial services. This is mirrored in Ireland, with one exception, where disclosed deal values have fallen in the technology, media and telecoms industry sector.

“The half year has also seen the withdrawal of a number of blockbuster deals, although in overall terms only 137 or 1% of announced deals have been withdrawn in the period.

“Life science and healthcare transactions announced accounted for 92% of disclosed deal values in Ireland for the first half of 2014[1], including five of the six largest transactions. The largest of these is Medtronic’s acquisition of Covidien Plc, which is currently in progress. Another major transaction in this space was announced last month - the acquisition of Shire Plc by AbbVie Inc., which is also in progress.

“The global IPO market is performing strongly, in the year to date, over 700 companies have come to market totalling 53% of 2013 volumes, the highest recorded first half IPO volumes since 2011.  Companies have raised proceeds of $103 billion which is a 20% increase over the same period in 2013, and are taking advantage of the favourable conditions to raise equity.”

Ends

For further information
Aoibheann O’Sullivan
Murray Consultants
01 417 2514
aosullivan@murrayconsult.ie

Claire Quinn
Deloitte
01 417 2356
cquinn@deloitte.ie

Notes to Editor

About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/ie/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

The information contained in this press release is correct at the time of going to press.

Deloitte’s 1,350 people in Dublin, Cork and Limerick provide audit, tax, consulting, and corporate finance services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges.

Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.

[1] Irish market statistics sourced from Mergermarket.com 

M&A Index
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