U.S. M&A witnessed strong rebound after the financial crisis, with Q32013 experiencing ‘the most active summer quarter’ by value.
The first half of 2013 had seen enhanced mega deals culminating in a peak during third quarter with the announcement of a 45 percent stake acquisition in Verizon Wireless by Verizon Communications Inc. (NYSE:VZ) for $124.1 billion.
Mergermarket, in its Q1-Q3 M&A report also revealed that global M&A increased gradually for the last three years.
Most Active Third Quarter
According to the Mergermarket report, the recent Verizon deal has catapulted to a Q3 value at $311.4 billion, making it the most active third-quarter for the U.S. on Mergermarket record since 2001. This marks a remarkable 87.7 percent jump from the second quarter and 41.1 percent jump from the third quarter of 2012.
Besides, the average deal size of U.S.-based transactions too had shown a steady increase since 2010 by hitting $579.3 million this year. This marks a record high since 2001.
The following table captures the top 10 M&A deals reported in the U.S.
Mergermarket’s report also highlights Global M&A has gradually increased for the last three years and the current year is on target to continue the trend and could potentially see the highest total since 2008.
Global M&A during the first three quarters of 2013 was valued at $1,606.7 billion, a 5.5 percent jump over the first three quarters of last year.
The growing boardroom confidence has echoed in consistent quarterly increases in M&A value during 2013, with the third quarter reporting $643.8 billion, showing an increase of 22.7 percent over the previous quarter.
Both the U.S. and Europe registered deal values during the first three quarters of 2013 that were above the same period last year. The U.S., with $654.5 billion, accounted for a 40.7 market share of global M&A followed by Europe garnering 29.8 percent market share with $478.7 billion.
The following table depicts the global M&A trends:
Global private equity witnessed decreases in value during the third quarter. However, with $215.8 billion, the buyout activity during the first three quarters of 2013 surpassed the $193.4 billion reported during the first three quarters of last year.
Mid-market analysis also revealed the first three quarters of 2013 ($398.7 billion) failed to haul the first three quarters deals ($431.8 billion) reported last year.