Mergermarket's Q3 M&A Round-Up

Global M&A up in Q3 2010

Global M&A totalled US$ 1,420.2bn for the first three quarters of 2010, up 24.8% from the same period in 2009. Deal count was also up by 16.7% at 8,010 announced deals

Goldman Sachs leads the global rankings

Goldman Sachs are the leading financial advisors, having advised on 208 deals worth a total of US$ 369.7bn in the first three quarters of 2010.

Private equity hits highest quarter since Q2 2008

Private equity-backed buyouts reached US$ 69.1bn in Q3 2010, the highest quarter since Q2 2008. Activity for the first nine months of the year had a total value of US$ 150.6bn, 93% more than the same time period in 2009.

Cross-border deal flow up 109% from the same period last year

Cross-border activity between regions has reached US$ 390.7bn so far this year, up 109% compared to the first three quarters of 2009. Cross-border deal flow makes up 27.5% of all global activity so far this year, the second highest percentage on mergermarket record.

Lowest quarter for emerging markets since Q3 2009

The emerging markets saw US$ 357.3bn worth of deals announced in Q1-Q3 2010, up 51.9% from the same period in 2009. However activity dipped in Q3 2010, with only US$ 98.4bn worth of deals announced, the lowest since Q3 2009. European inbound and outbound M&A dominated the majority of activity in the emerging markets in Q1-Q3 2010.

Average EBITDA multiples highest since 2008

The average EBITDA multiple across global M&A for 2010 to date is 14.4x, the highest since 2008. The highest valuations have been seen in the Asia-Pacific region, where the average EBITDA multiple is 18.5x.

Highest number of deals over US$ 500m since 2007

6.4% of announced deals in Q1-Q3 2010 were valued over US$ 500m, the highest proportion since 2007. 515 deals with a deal value exceeding US$ 500m have been announced so far this year, compared to 323 for the same period in 2009, a 59.4% increase.

Other observations:

European M&A up 50% by value and 18% by deal count from the same period last year

US M&A down 1% by value and up 24% by deal count from Q1-Q3 2009

Asia-Pacific M&A up 23% by deal value from the same period last year

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