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The Deloitte M&A Index 2017

Dealing with the future

Despite the big shifts in political tectonic plates in 2016, M&A markets managed to hold up well. The year ended with $3.2 trillion worth of announced deals, about 16 per cent down on the record-breaking figure in 2015, but still a high performing year out of the last ten.

A characteristic trend of 2016 was companies increasingly turning to M&A and corporate venturing to harness the growth potential of new, disruptive technologies. A host of new consumer offerings that blur the boundaries of traditional sector lines–FinTech and HealthTech are two such examples–provide new avenues for companies to explore in their quest for growth. The M&A spend on disruptive innovation-related sectors reached $291 billion in 2016, four times the $72 billion in 2012.

Deloitte M&A Index Outlook for 2017

Sector outlook

Outlook for sectors and regions
In 2016 around $1.04 trillion worth of cross-border deals were announced, accounting for 36 per cent of total global M&A deals, the highest proportion since 2012.

The TMT sector dominated the M&A markets in 2016, accounting for 8,577 deals, $694 billion in deal value. Read how other sectors performed in this chapter.

2017 M&A themes

Uncertainty is the 'new normal'
Economic and political uncertainty is set to be a central theme for 2017 and will impact M&A deal flows and corporate confidence. However, the M&A Index also shows that uncertainties create opportunities with bold, decisive moves potentially resulting in successful deal-making.

Creating shareholder value through divestments
In 2016, $200 billion worth of divestments were announced. The M&A Index shows that companies are actively divesting assets to refocus on their core businesses and bolster post-acquisition balance sheets. We look at what divestments activity we might expect to see in the next 12-18 months.

Fuelling growth through innovation
Companies are increasingly turning to M&A and corporate venturing to harness the growth potential that new, disruptive technologies are enabling. What results are a host of new consumer offerings that blur the boundaries of traditional sector lines as companies use the technology associated with one sector to disrupt another.

Explore the role of M&A and CVC to capture innovation opportunities

Fuelling growth through innovation


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    About the M&A Index

    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.
     
    The Deloitte M&A Index is created from a composite of weighted market indicators from four major data sets: macroeconomic and key market indicators, funding and liquidity conditions, company fundamentals, valuations.
     
    Each quarter, these variables are tested for their statistical significance and relative relationships to M&A volumes. As a result, we have a dynamic and evolving model which allows Deloitte to identify the factors impacting dealmaking and enable us to project future M&A deal volumes. The Deloitte M&A Index has an accuracy rate of over 90% dating back to Q1 2008.

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