M&A Tracker Q3 2012

M&A market prepares for the chill to set in

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Highlights: Following a summer of continued worldwide macro uncertainty, global M&A activity is falling with the level of completed deals reaching a decade low.

Following a year of continued macro-economic uncertainty, global M&A activity is falling with the level of completed deals reaching the lowest level since Q1 2010.

The prolonged period of slowdown in M&A activity is not over yet, as global deal volume and value fell.

  • Deal volume and value fell by 18% and 11% respectively in Q3 2012, showing that despite a slight uptick in the previous quarter.

North America continues to shape the global M&A landscape.

  • The North American region in Q3 provided 39% of globally announced transaction volumes and 53% of globally announced transaction values involved a North American target.

Asia becomes the second most active region as economic conditions dampen European levels.

  • Following a 13% quarter-on-quarter increase in transaction value Asia currently represents 25% of globally announced deals and 19% of global value and surpassed Europe both in terms of volume and value for the first time since the tracker started in Q1 2010.

Global public bid activity remains fairly stable compared to private deal space.

  • The global deal volume of public bids fell by 8%, while announced deal value rose by 7% in Q3 2012.

Deal conversion rates are at their lowest since 2010.

  • 60% of all bids announced in the last nine months completed in the same period compared to 67% for the same period in 2011.



Figure 1. M&A announced volume and value

Figure 1. M&A announced volume and value

Source: The EY M&A Tracker, compiled for EY by MARC, the M&A Research Centre at Cass Business School.

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Figure 2. M&A completion volume and value

Figure 2. M&A completion volume and value

Source: The EY M&A Tracker, compiled for EY by MARC, the M&A Research Centre at Cass Business School.

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