Mergermarket has released its Mid-Atlantic M&A trend report for 2014, including Delaware, District of Columbia, Maryland, New Jersey, New York, Pennsylvania, Virginia, and West Virginia

Mid-Atlantic M&A trend: A few key findings include:

  • The number of deals targeting US Mid-Atlantic companies in 2014 reached the highest level since 2007 with 874 deals valued at US$ 296.1bn. The increased deal count, however, did not translate into an increase in total values, which dropped 9.8% from US$ 328.2bn in 2013
  • Although deal count remained strong in every quarter this year, each registering more than 200 transactions, overall values remained below last year’s totals. The year started off well with US$ 121.4bn worth of deals in Q1, more than double the US$ 52.1bn recorded in the previous quarter, and 85.6% above the same period in 2013. However, a subsequent lull in the middle of the year – Q2 (US$ 84.5bn) and Q3 (US$ 35.8bn) combined for only US$ 120.3bn – followed by an average final quarter (US$ 54.4bn) meant the year closed out below last year’s lofty value totals, despite the highest deal count in six years

Overview

The number of deals targeting US Mid-Atlantic companies in 2014 reached the highest level since 2007 with 874 deals valued at US$ 296.1bn. The increased deal count, however, did not translate into an increase in total values, which dropped 9.8% from US$ 328.2bn in 2013.

M&A Trend

Although deal count remained strong in every quarter this year, each registering more than 200 transactions, overall values remained below last year’s totals. The year started off well with US$ 121.4bn worth of deals in Q1, more than double the US$ 52.1bn recorded in the previous quarter, and 85.6% above the same period in 2013. However, a subsequent lull in the middle of the year – Q2 (US$ 84.5bn) and Q3 (US$ 35.8bn) combined for only US$ 120.3bn – followed by an average final quarter (US$ 54.4bn) meant the year closed out below last year’s lofty value totals, despite the highest deal count in six years.

The two largest deals in 2014 were Comcast Corporation’s US$ 68.5bn acquisition of Time Warner Cable (the second-largest transaction on Mergermarket record), and Actavis’ US$ 23.1bn acquisition of Forest Laboratories. The price tags on these two deals alone contributed heavily to total deal value for the entire year; together, their combined value of US$ 91.6bn accounted for 30.9% of 2014’s total deal value.

M&A Trend

New York returned as the top state for deal making in the region on the back of US$ 157bn-worth of deals, regaining the reins from New Jersey. The Empire State was home to the target of the highest valued deal (Time Warner/Comcast Corporation) for any state in the region on Mergermarket record. But it was not all just about total value, as New York-based targets also saw the highest number of announcements on record with 341 deals – seven more than the previous peak in 2007.

Due largely to the aforementioned Comcast/Time Warner Cable deal, TMT had the highest total sector value of 2014 at US$ 99.8bn, though this did represent a 40.2% decrease from TMT’s 2013 total of US$ 167bn.

M&A Trend

A notable increase was seen in the Pharma, Medical & Biotech industry, which, despite seeing only four more deals than 2013, registered a significant 64.9% increase by value at US$ 60.2bn versus US$ 36.5bn in 2013. Irelandbased Actavis was on an acquisitive path in 2014 with New York based Forest Laboratories swept up in a transaction valued at US$ 23.1bn, accounting for over a third (38.4%) of the sector’s total.

Globally, 2014 marked a record year for private equity exit activity, and the Mid-Atlantic played its part with 159 exits valued at US$ 45.5bn – the highest deal value and deal count for exits in the region since 2007.

M&A Trend

Mergermarket criteria

All data is based on transactions over US$ 5m and is based on the Mergermarket’s M&A deals database. Deals with undisclosed deal values are included where the target’s turnover exceeds US$ 10m.

Deals where the stake acquired is less than 30% will only be included if the value is greater than US$ 100m. Click here for the full deal criteria. M&A trend: Based on the dominant geography of the target company being Mid-Atlantic-based. Excludes lapsed and withdrawn bids.

M&A Trend

Cross-border M&A:

Inbound refers to cross-border M&A where the dominant geography of the target company is Mid-Atlantic-based, and the dominant geogrpahy of the bidder is any other region excluding states in the Mid-Atlantic.

Outbound refers to cross-border M&A where the dominant geography of the bidder company is Mid-Atlantic-based, and the dominant geography of the target is any other region excluding Mid-Atlantic states.

Excludes lapsed and withdrawn bids.

M&A Trend

Top deals: Based on the dominant geography of the target company being Mid-Atlantic. FA refers to financial advisor and LA refers to legal advisor. Excludes lapsed and withdrawn bids.

Industry analysis: Based on the dominant geography of the target company being Mid-Atlantic-based. Industry sectors represent the primary industry sector of the target company only. Excludes lapsed and withdrawn bids.

League tables: Based on the dominant geography of the target, bidder or seller company being Mid-Atlantic-based. The financial advisor tables exclude lapsed and withdrawn bids and the legal advisor tables include lapsed and withdrawn bids.

All values are in US$.

Data correct as of 09-Jan-2014.