M and A
Global M&A Value Hit Record High In 2015 – Zephyr
2015 was a year of high-value deals, research by M&A database firm Zephyr reveals.
While the volume of mergers and acquisitions worldwide shrunk in 2015, their total value reached an annual record of $6.14 trillion, according to a new report from Zephyr.
The pace of the global M&A roundabout is one worth tracking for the wealth management sector given that significant liquidity events can make individuals very rich very quickly. The year saw several high-value transactions – the heftiest deal was the $160 billion acquisition of Dublin-headquartered pharmaceuticals maker Allergan by Pfizer.
The number of global deals fell marginally from 89,773 in 2014 to 89,440 in 2015 but value was up 28 per cent year-on-year, with most regions logging rises in value, according to the report. Leading the way was the US where despite a 7 per cent dip in volume to 14,357 deals, value jumped 15 per cent to $1.94 trillion. This came as no surprise considering 11 of the year's top 20 transactions by value targeted US-based companies.
In Europe, the UK came out on top, with 7,260 deals worth a combined $548.7 billion. This represented an 11 per cent increase in volume while value more than doubled.
Regionally, it was Western Europe where value rose the most, climbing 50 per cent year-on-year to $1.73 trillion. In fact, the only regions that did not see greater value in 2015 were the Middle East and North Africa, and Central and Eastern Europe.
“2015 provided definitive proof that global M&A deal activity was truly back on track, with record levels of announced deal values recorded, despite a relatively small decline in the absolute volume of deals announced. Six of 2015's 'mega' deals (deals greater than $10 billion) rank in the top 25 deals announced globally since 1 January 2000,” said Zephyr's director, Lisa Wright.
“High-value deals have been responsible for driving the improvements seen in Western Europe, North America and Asia-Pacific dealmaking activity in 2015 when compared to 2014 and have gone some way to compensating for slowdowns in MENA and CEE.”
