WORLDWIDE M&A DOWN 6%, DEALS OVER US$5 BILLION DOWN 18%
The value of worldwide M&A totalled US$2.4 trillion during full year 2013, a 6% decrease from comparable 2012 levels and the slowest annual period for global deal making since 2009. Worldwide deals valued over US$5 billion totalled US$584.7 billion during 2013, accounting for one-quarter of announced deal activity. Just over 36,800 worldwide deals were announced during full year 2013, a 7% decline from a year ago and the slowest annual period for M&A, by number of deals, since 2005.
CROSS BORDER DOWN 18%; EMERGING MARKETS ACCOUNT FOR 28% OF M&A
Cross Border M&A activity totalled US$737.8 billion during full year 2013, accounting for 31% of overall M&A volume and down 18% compared to full year 2012. Accounting for 28% of worldwide announced activity, M&A involving companies located in the emerging markets totalled US$675.2 billion during full year 2013, a 5% decrease from 2012.
COMPLETED ADVISORY FEES DOWN 12%
According to estimates from Thomson Reuters/Freeman Consulting, M&A advisory fees from completed transactions totalled US$22.5 billion during full year 2013, a 12% decrease from the comparable period in 2012. M&A advisory fees were the only segment across all investment banking products to register double-digit percentage declines from 2012.
ENERGY & POWER, REAL ESTATE AND TELECOM LEAD THE MARKET
The energy and power sector was most active during full year 2013, commanding 15% of announced M&A, while the real estate and telecommunications sectors accounted for 14% and 11% of M&A activity, respectively. Telecom and real estate led all sectors by growth rate with 122% and 44% increases over 2012, respectively. Financials and materials registered declines of 40% and 32% compared to full year 2012.
BUYSIDE PRIVATE EQUITY M&A UP 22% COMPARED TO 2012
Worldwide private equity-backed M&A activity totalled US$374.3 billion during full year 2013. Private equity deal making in the high tech, consumer staples and energy sectors accounted for 47% of the activity during full year 2013, up from 30% during 2012. Accounting for 16% of worldwide M&A during the full year 2013, private equity-backed M&A increased 22% compared to 2012 levels.