Mergers & Acquisitions Trends on 2015 by Thomson Reuters

1. 2015
M&A TRENDS
Worldwide M&A accounted for 6% of GDP
as US activity surpassed pre-financial
crisis levels
On an annual basis, US M&A activity as a
percent of GDP pushed ahead 2007 levels,
while global and European activity lagged a
bit behind
Fourth quarter 2015 M&A surpassed $1T,
50% from third quarter
Setting an all-time record for quarterly M&A,
it also marked the first span of three
consecutive trillion-dollar quarters on record
Strongest 12-month period
for M&A since records began
in 1980
A Record Year for Deal Making
Over the past 20 years, M&A rallies have been bracketed into distinct seven-year cycles.
With a record $4.7 trillion of deals announced during 2015,
a review of the key trends of the year and historical context for the year ahead.
141 ‘Mega Deals’ ($5 bil+)
accounted for 51% of
overall M&A value
The highest percentage and
number of deals on record
TheUSandAsiaaccounted
for a combined 74% of
worldwide deal making
The strongest annual period
on record for both regions
Cross-border M&A
accounted for 33% of
worldwide deal making
27% compared to 2014
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Worldwide Monthly M&A ($bil) Dow Jones Industrial Average
Bulge Bracket firms saw uptick in M&A
advisory fees as ‘Major’ Boutiques share
declined during 2015 as industry-focused
boutiques gained share
The likes of Goldman Sachs and Morgan Stanley
picked up significant M&A wallet share this year,
while established boutiques like Lazard, Evercore, and
Houlihan Lokey may be ceding share to some of their
boutique rivals
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2007 2008 2009 2010 2011 2012 2013 2014 2015
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Quarterly Positive Stock Price Reaction (%) (LH) Annual Positive Stock Price Reaction (%) (RH)
2007 2008 2009 2010 2011 2012 2013 2014 2015
Are we approaching the tail-end of this cycle?
M&A rallies can be bracketed into distinct
seven-year cycles. Peaks have been followed by
market declines.
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Number of Boutique Firms Bulge Bracket (%) All Boutique (%) Major Boutique (%)
Number of
Boutique Firms
Bulge Boutique (%)
Major Boutiques (%)
All Boutiques (%)
Second half volatility halted positive
shareholder reaction, 51% of 2015 mergers
saw positive; 37% positive in Q4’15
Investors have been welcoming M&A moves over
the course of the last two years, but the
second half of 2015 saw steep drop-off in
investor applause — is it volatility or are investors
taking a closer look at M&A?
Healthcare, Energy, and Tech, Media,
Telecom (TMT) lead deal making in 2015
Top 10 deals of 2015:
Learn more:
financial.thomsonreuters.com
HEALTHCARE
Pfizer Inc
+ Allergan PLC
$191.5 billion
CONSUMER STAPLES
Anheuser-Busch Inbev
+ SABMiller PLC
$120.8 billion
ENERGY & POWER
Royal Dutch Shell PLC
+ BG Group PLC
$81 billion
MEDIA & ENTERTAINMENT
Charter Communications Inc
+ Time Warner Cable Inc
$78.4 billion
MATERIALS
The Dow Chemical Co
+ DuPont
$68.4 billion
HIGH TECHNOLOGY
Dell Inc
+ EMC Corp
$65.8 billion
ENERGY & POWER
Energy Transfer Equity LP
+ The Williams Cos Inc
$55.9 billion
CONSUMER STAPLES
HJ Heinz Co
+ Kraft Foods Group Inc
$54.7 billion
HEALTHCARE
Anthem Inc
+ Cigna Corp
$49.4 billion
HIGH TECHNOLOGY
Shareholders
+ PayPal Holdings Inc
$46.8 billion
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Quarterly Positive Stock Price Reaction (%) (LH) Annual Positive Stock Price Reaction (%) (RH)
2007 2008 2009 2010 2011 2012 2013 2014 2015
Worldwide Quarterly M&A ($bil)Worldwide Quarterly M&A ($bil) Number of Deals
Quarterly Positive
Stock Price Reaction (%) (LH)
Annual Positive
Stock Price Reaction (%) (RH)
© 2015 Thomson Reuters GRC03615/10-15