Worldwide deal making hits US$3.6 trillion; record number of deals
Worldwide M&A activity totaled US$3.6 trillion during full year 2017, on par with full year 2016 levels and the fourth consecutive year to surpass $3 trillion. Deals with a value less than US$1 billion totaled US$1.3 trillion, up 7% compared to full year 2016. By number, deals less than US$1 billion also increased 7% compared to a year ago. Overall, 49,448 worldwide deals were announced during 2017, an increase of 3% compared to a year ago and the strongest year for M&A, by number of deals, since records began in 1980.
Deal making up 33% from Q3'17
The value of worldwide M&A announced during the fourth quarter of 2017 totaled US$1.1 billion, an increase of 33% compared to the third quarter of the year and the third consecutive fourth quarter to surpass US$1 trillion in announced deals.
Cross-border M&A falls to three-year low
Despite increased levels of outbound M&A from acquirors based in the United States and intra-Europe M&A activity, cross-border M&A activity totaled US$1.3 trilion during full year 2017, a 10% decline compared to full year 2016 and the slowest year for cross-border M&A since 2014. China Outbound M&A totaled US$141.5 billion, a 35% decline compared to last year's record.
European M&A up 17%; United States deals down 16%
M&A activity for European targets totaled US$867.5 billion during full year 2017, an increase of 17% compared to the level of activity seen during 2016. With US$1.4 trillion in announced deals during 2017, United States M&A fell 16% compared to a year ago, while the number of United States deals increased by 14%, the largest annual period, by number of deals, since records began in 1980.
Real estate, energy & power, tech lead sector mix
Deal making in the Real Estate sector totaled US$529.8 billion during full year 2017, an increase of 47% compared to 2016 levels and an all-time annual record. Energy & Power and Technology M&A each accounted for 13% of overall M&A during the year, while Industrials deal making accounted for 12% of activity. Materials and Media M&A registered the steepest year-over-year declines, down 46% and 21%, respectively.
Completed M&A advisory fees increase 22%
Estimated M&A advisory fees from completed transactions totaled US$38.7 billion during full year 2017, a 22% increase from 2016 levels.