M&A Tracker

Heading for warmer climates?

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Headlines, Q4 2012: Announced transaction levels are rising, conversion rates are falling and deals are taking longer. What will the market look like in 2013?

In Q4 overall deal volume and value picked up, by 4% and 25% respectively. The large increase of 25% in total announced deal value — the second highest quarter-on-quarter (q-on-q) increase since the start of the Tracker in Q1 2010 — could be an indicator that confidence in M&A is increasing. However, Q4’s uptick in activity could have been partly driven by a seasonal end-of-year effect.

The market for public bids shows signs of recovery. Globally announced bids volume is at its highest level since Q1 2010, up 12% q-on-q, and the corresponding announced deal value was up 27% q-on-q.

Larger deals are returning to market. There has been an increase in the average value of transactions announced in most markets. The average deal value of completed bids is also increasing.

Deals continue to take longer to complete. The average time to completion in 2012 was 52 days compared with 48 days in 2011 and 47 days in 2010.

M&A Announced Bids Volume and Value Tracker

M&A Completed Deal Volume and Value Tracker