GLOBAL STATISTICAL UPDATE – XBMA Quarterly Review for First Quarter 2014

Executive Summary/Highlights:

  • Global M&A volume in Q1 was US$756 billion, marking the second strongest quarter in the last three years and nearly double the volume of Q1 2013.  Europe experienced a particularly strong resurgence in deal-making activity in Q1.  If this trend persists, global M&A activity in 2014 could reach US$3 trillion, which would be the highest annual volume over the last six years.
  • As one indication of companies’ appetite for M&A, Q1 witnessed two mega deal bidding wars on each side of the Atlantic, for Vivendi’s SFR and Time Warner Cable. At an annualized volume of US$980 billion, cross-border deal activity is on pace to reach its highest level since 2010 and will account for 32% of global M&A volume in 2014.
  • Media/Entertainment led sector deal volume as a result of the Comcast/Time Warner Cable transaction.  The Real Estate and Energy & Power sectors also turned in strong quarters.
  • Private equity deal activity continued to gain momentum in Q1, accounting for 18% of global M&A volume, an increase of 21% over the corresponding period in 2013.
  • Strong earnings and acquirer stock prices and large cash stockpiles continue to bode well for increased domestic and cross-border transactions alike.

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