Worldwide deal making falls 19%, as mega deals slow
Worldwide M&A activity totaled US$1.6 billion during the first quarter of 2016, a 19% decrease from comparable 2015 levels and the slowest opening six month period for worldwide deal making in two years. Forty-eight deals with a value greater than $5 billion were announced during the first half, their combined value down 33% compared to the first half of 2015. Overall, 21,087 worldwide deals were announced during the first half of 2016, a 5% decrease compared to last year.
Deal making up 24% from first quarter
The value of worldwide M&A announced during the second quarter of 2016 totaled US$913.4 billion, an increase of 24% compared to the first quarter of last year.
United States M&A falls 20%; Asia Pacific deals down 24%
M&A activity for United States targets totaled US$708.9 billion during the first half of 2016, a decrease of 20% compared to the level of activity seen during first half 2015. With US$441.3 billion in announced deals during the first half, Asia Pacific M&A fell 24% compared to a year ago. Asia Pacific targets account for 27% of worldwide M&A, compared to 21% for Europe.
Tech, materials & industrials lead balanced sector mix
Deal making in the Technology sector totaled US$233.2 billion during the first half of 2016, an increase of 2% compared to 2015 levels, while Materials increased 75% and Industrials deal making increased 23% compared to a year ago. Seven of 12 major industry sectors account for at least 10% of year-to-date M&A, the most balanced first half sector breakdown since records began in 1980.
Record outbound China M&A powers cross-border deals
Powered by a record level of outbound M&A from Chinese acquirors, cross-border M&A activity totaled US$595.1 billion during the first half of 2016, accounting for 36% of overall M&A volume and an 6% decrease over 2015 levels. Cross border M&A accounted for 31% of total M&A activity during the first half of 2015.
Completed M&A advisory fees down 13%
According to estimates from Thomson Reuters/Freeman Consulting, M&A advisory fees from completed transactions totaled US$13.2 billion during the first half of 2016, a 13% decrease from the comparable period in 2015 and the slowest opening quarter for advisory fees since 2014.