Global M&A deal activity to top US $4 trillion this year
Highest value since 2007
London, UK, 14 December 2015 — M&A deal values are expected to surpass US $4 trillion for 2015, according to analysis from Deloitte. The M&A Index predicts there to be 11,300 deals in the fourth quarter of 2015, up by 12% on the third quarter. This would generate a total of 42,800 deals for the year, slightly up on the 41,900 deals achieved during 2014. This year, while the recovery was strong in deal values, it was less pronounced in terms of volumes, particularly in Europe.
Iain Macmillan, head of global M&A at Deloitte, commented: “As this record breaking year draws to a close, concerns over global growth are back, along with a divergence in economic and monetary policies. Also, variations in corporate performance and deal Price-to-Earnings Ratios (P/E multiples) between the US and Europe are creating more opportunities. We expect these conditions to define dealmaking in 2016.”
Cross-border M&A has been a feature throughout 2015, with $1.07 trillion in cross-border deals up until mid-November. European companies have been at the centre of this, participating in just over half (53%) of all announced cross-border deals. Within Europe, US companies have completed $114 billion worth of deals, $44bn of which are in the UK.
Iain Macmillan commented: “We think cross-border activity will continue to be a key feature for M&A next year. Uneven economic growth and a slowdown in global trade
“We also predict a strong resurgence in Japanese dealmaking, as falling domestic consumption there pushes
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