M&A Index 2016

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The Deloitte M&A Index 2016

Opportunities amidst divergence

The Deloitte M&A Index is a forward-looking indicator that forecasts future global M&A deal volumes and identifies the factors influencing conditions for dealmaking.

Key highlights in this edition

  • We’re expecting 2015 to end with over $4 trillion worth of deals making it the highest for deal values since 2007.
  • 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. New corridors have started emerging between Asia and Europe, led by China and Japan.
  • Companies are committing to deliver annualized cost synergies that represent, on average, 3-4% of the transaction value. If all announced cost synergies are realized and sustained, they could add an estimated $1.5-1.9 trillion to the value of these companies. We can assume that delivering these synergies will be high on boardroom agendas.
  • As this record-breaking year draws to a close, concerns over global growth are back, along with divergence in economic and monetary policies. Looking ahead, such divergence will create M&A opportunities and define deal making in 2016.
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"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."
Iain Macmillan, Global head of M&A

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