Executive Summary/Highlights:

  • While total global M&A volume has been relatively consistent over the last four years, hovering around US$ 2.5 trillion per annum, the deal activity making up the $2.5 trillion has varied considerably over this period, reflecting a few trends:
    • Private equity-backed M&A has been gaining steam steadily, growing from 6.3% of global M&A in 2009 to 15.6% of global M&A in 2013;
    • Growth of M&A involving emerging economies has outpaced their GDP growth, with Chinese domestic M&A showing increasing strength, but inbound and outbound M&A involving emerging economies ebbs and flows based on various exogenous factors;
    • European M&A has been mixed over the last four years, exceeding $200 billion only once since 2009, and ending 2013 down 16.5% from 2009 levels; and
    • U.S. share of global M&A continues to grow disproportionately as the re-covery proceeds, on both the domestic and cross-border fronts.
  • Global M&A volume for the first three quarters of 2013 was slightly higher than for the same period in 2012, but volume in Q4 2013 was slightly down, probably because it did not benefit from the same rush of deal-making as was seen following the U.S. elections in Q4 2012.
  • While cross-border M&A volume in 2013 was down a little from 2012, after a relatively quiet three quarters, emerging-market acquirers went on a holiday shopping spree, as six of the top 10 deals for 2013 involved an emerging-market acquirer and developed-market target and were announced in Q4 2013.

Click here to see the Review