Global M&A Financial Advisory Review: Thomson Reuters

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Worldwide M&A falls 18% as pace of mega deals slows

Worldwide M&A activity totaled US$699.4 billion during the first quarter of 2016, an 18% decrease from comparable 2015 levels and the slowest opening period for worldwide deal making in two years. Twenty-two deals with a value greater than $5 billion were announced during the first quarter, their combined value down 24% compared to the first quarter of 2015. Overall, just over 9,250 worldwide deals were announced during the first quarter of 2016, a 10% decrease compared to last year.

Deal making falls 56% from all-time record quarter

The value of worldwide M&A announced during the first quarter of 2016 fell 56% compared to the fourth quarter of last year, which ranked as the largest quarter for global deal making since records began in 1980. The percentage decline, both by value and number of deals, is the largest consecutive quarterly decline on record.

United States M&A falls 38%; European deal making at 5-year high

M&A activity for United States targets totaled US$245.7 billion during the first quarter of 2016, a decrease of 38% compared to the level of activity seen during the first quarter of 2015. With US$189.4 billion in announced deals during the first quarter, European M&A registered the strongest opening period for deal making in the region since 2011.

Industrials, materials & financials lead activity

Deal making in the Industrials sector totaled US$116.4 billion during the first quarter of 2016, an increase of 71% compared to 2015 levels, while Materials increased 41% and Financial deal making fell 2% compared to a year ago. Healthcare M&A, which accounted for a market-leading 13.1% of first quarter 2015 deal making, fell 53% to US$52.8 billion this year.

China powers cross-border M&A up 8%

Powered by a record level of outbound M&A from Chinese acquirors, cross-border M&A activity totaled US$304.6 billion during the first quarter of 2016, accounting for 44% of overall M&A volume and an 8% increase over 2015 levels. Cross border M&A accounted for 33% of total M&A activity during the first quarter of 2015.

Completed M&A advisory fees down 19%

According to estimates from Thomson Reuters/Freeman Consulting, M&A advisory fees from completed transactions totaled US$6.0 billion during the first quarter of 2016, a 19% decrease from the comparable period in 2015 and the slowest opening quarter for advisory fees since 2013.

Source: Thomson Reuters

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