Report: M&A deal-making in 2016 weaker than 2015
Mergermarket's Q3 trend report shows that global M&A deal-making in 2016 has not been able to achieve the same record heights reached last year, with political uncertainty, increased regulation and decreased confidence all weighing down activity.
To-date in 2016, 12,283 deals worth $ 2.2 trillion represents a 20.2% value decrease compared to the same period in 2015. Despite this, M&A deal value has experienced two quarterly value increases this year, with Q3 ($812.9 billion) increasing 8.8% compared to Q2 ($747.2 billion).
Key highlights from the report include:
- Industrials & Chemicals was the most targeted sector globally with 2,313 deals worth US$ 416.8 billion representing a 41.1% value increase compared to the same period in 2015.
- Acquisitive Chinese buyers invest in 201 deals worth $141.2 billion so far this year targeting firms outside of the Asia-Pacific region, overtaking all annual deal values and volumes on Mergermarket record (since 2001).
- Opportunistic dealmakers engage in bargain hunt for U.K. assets following Brexit vote, with inbound activity jumping 283.0% by value compared to Q2.
Bayer's bid for Monsanto company was the largest deal in Q3, worth $65.3 billion and boosting deal value for the Industrials and Chemicals sector.
Goldman Sachs leads the advisor rankings, having advised on 185 deals worth $602.2 billion.