Global deal makers were forced to navigate a sea of change during 2016, as the populist vote swept across the global political stage.
Despite a series of political shockwaves, global mergers and acquisition (M&A) activity to-date (16,194 deals, US$3.1tn) managed to reach its third highest deal value since 2007 (US$ 3.7tn). This was despite dropping 22.1% compared to 2015, with 1,844 fewer deals announced, according to a report by Merger Market.
Top M&A trends in 2016:
- October marked the peak of yearly M&A activity, with 1,362 deals worth US$454.3bn representing the highest monthly deal value since May 2007 (US$546.7bn).
- Chinese dealmakers engaged in 242 deals worth US$171bn outside of Asia, 3.5 times higher than 2015’s previous record value (US$48.8bn, 174 deals), with 68 more deals announced.
- US dealmaking accelerated towards the end of the year, with a flurry of H2 megadeals (AT&T/Time Warner, Level 3/Century Link, Energy Transfer/Sunuco) bumping up deal value
Global M&A activity from 2010 – 2016