Announced Emerging Markets M&A Up 29% Over Full Year 2013 | Completed Advisory Fees Down 5% | Financials Top Industry
The total value of announced M&A activity in the Emerging Markets reached US$858.8 billion in 2014, a 28.5% increase from totals reached in 2013. The number of M&A transactions in the Emerging Markets totaled 14,051, a 7.2% increase from the total number of deals in 2013.
Chinese activity once again drove M&A in the Emerging Markets, with 5,024 transactions worth US$449.8 billion, far outpacing Brazilian activity, which generated the next highest volume, with 553 deals worth US$77.1 billion. India followed, accumulating US$37 billion over 1,101 transactions.
Financials led Emerging Market activity during in 2014, accounting for 18% of all M&A volumes and accumulating US$153.5 billion in deal activity. Energy & Power placed second, with US$134.4 billion, a 16% share.
According to Thomson Reuters/Freeman Consulting, total estimated fees earned from completed Emerging Market M&A transactions in 2014 reached US$3.9 billion, representing a 5.3% decrease from 2013 totals.
Morgan Stanley took the top spot in the Emerging Markets in 2014, with US$133.8 billion in announced deals. JP Morgan and Citi took the second and third spots, respectively.
Average EBITDA multiples across the Emerging Markets rose to 15x in 2014, ranging from 11 .2x in the Middle East & North Africa to 20.6x in China.
Bid premia (to 4 weeks prior stock price) averaged 22.1%, a decrease from the 27.2% averaged in 2013. Average premia values declined year over year in every sector except for Consumer Products.