REVIEW
Fueled by favorable macroeconomic conditions, high levels of cash among strategic acquirers and low interest rates, the M&A market produced record or nearrecord results across most geographies and sectors in 2015. Entering 2016, however, the M&A market faces several headwinds that may blunt advances in deal flow and valuations in the coming year.
The number of reported M&A transactions and deal value worldwide hit record levels in 2015. Global M&A deal volume increased 4%, from 31,963 deals in 2014 to 33,365 in 2015—eclipsing the 32,856 deals at the peak of the market in 2005. On the heels of a very strong M&A market in 2014, global M&A deal value surged by another 29%, from $3.01 trillion in 2014 to $3.89 trillion in 2015—more than double the average of $1.93 trillion for the three-year period that preceded 2014.
The number of worldwide billion-dollar transactions increased 10%, from 489 in 2014 to 536 in 2015. Aggregate global billion-dollar deal value grew 45%, from $2.02 trillion to $2.94 trillion.
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