20 days and still counting…

As we approach the end of the 1st half of 2015, global deal making is reaching levels last seen back in 2000. As of yesterday (2nd June) the value of global announced M&A deals had reached not far short of USD 1.8 trillion. Whist this is not yet comparable with the full first six months of 2014, where announced deals reached just slightly over USD 2.0 trillion, there are still 20 working days left in June for dealmakers to surpass the first half of last year’s total.

So far in 2015, 23 deals greater than USD 10bn in value have been announced, a figure higher than any other year other than in H1 2007. Finally the cash reserves of corporates have been unleashed, with all but 2 of these 23 deals being corporates acquiring other corporates as opposed to the PE houses leading the charge.

US corporates are driving the resurgence in the “mega” deals, with 11 of these 21 deals involving US based acquirors, and the biggest deal of the year to date is the USD 77bn acquisition of Time Warner by Charter Communications.

The financial press talks of cheap credit and positivity in boardrooms as the factors which appear to be driving the appetite for all this deal making. Stories that give me a real feeling of déjà vu for back in 2007 and 2008 before the Global Financial crisis hit!

It will be very interesting to see where deals go from here!

Filed under: dealmaking, global, M&A, acquisition