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Global M&A Activity Falls 27%
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Tom Mclain
Sep 03 2008, 09:19 PMToday's Wall Street Journal included an article written by Victoria Howley entitled, "Global M&A Activity Falls 27% On Continued Credit-Crunch Strain." Among the things mentioned in the article, which is based on research done by research firm Dealogic, are:
* "The value of the M&A market reached $2.5 trillion Sept. 1 compared with $3.46 trillion to the same date in 2007."
* "Strategic M&As continue to be healthier than private-equity buyouts."
* "There are only two industries where activity has increased from a year earlier" - mining and consumer products.
*"Crossborder deals total $920.5 billion, down 31%, with the U.S. the most targeted nation."
It would be great to see comments on this article, so please tell us what you think.
The article is at: http://online.wsj.com/article/SB122043930850494623.html?mod=...[Edited Sep 03 2008]
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J. M.
Oct 24 2008, 08:21 PMThere's no clear picture right now:
"Turmoil Accelerates Third Quarter M&A Activity"
The financial crisis increased the number of mergers and acquisitions during the third quarter and M&A driven by divestitures nearly doubled compared to the second quarter as firms reassessed their strategies.
http://www.fundaction.com/ArticleLogin.aspx?ArticleID=202805...
"Market volatility hits M&A activity"
An unprecedented amount of banking consolidation triggered by the credit crunch pushed the volume of deals worldwide to $2,810bn in the first nine months of the year, although it was not enough to prevent a 24% fall in global M&A.
FT Blog, October 1, 2008
http://ftalphaville.ft.com/blog/2008/10/01/16517/market-vola...
"M&A grinds to a halt until the dust settles"
Pent-up demand for mergers and acquisitions, particularly in the resources sector, could trigger a surge in M&A activity once markets stabilise. But the rebound is unlikely to occur until next year, while equity issuance may remain moribund until the second half of 2009.
The Australian, October 04, 2008
http://www.theaustralian.news.com.au/story/0,25197,24443296-...
"M&A market activity is definitely on the decline."
With a frozen credit market, not surprisingly, nothing is moving. Confidence in the US M&A market is headed downhill. In 2006, 63% of those surveyed believed the overall M&A market would be strong. In 2007, 36% thought it would be strong. This year, only 16% believe it will be strong in 2009.
Roger Aguinaldo, October 17, 2008
http://www.maadvisor.net/maalerts/10-17-08/alert_main10-17-0...
"[UK] M&A activity drops in Q3, but September provides hope in the face of adversity"
M&A activity across the corporate and private equity sectors in the UK saw a downturn in Q3, according to analysis from Deloitte, the business advisory firm. The total volume of completed deals in Q3 2008 declined by 41% from the previous quarter, and is down 48% compared to the same period last year. Similarly, the volume of announced deals dropped by 31% compared to Q2 08, and fell 39% from Q3 07. Whilst the landscape has changed and businesses are being more cautious, those with strong balance sheets will be looking to take advantage of lower prices, and others will be forced into disposals or mergers to survive.
As our recent CFO survey highlighted, for the first time since the credit crunch began, CFOs expect to see an increase in M&A activity. There may be gloom on the High Street, but for well positioned corporates, bargain hunting is back in fashion.”
Deloitte, October 17, 2008
http://www.deloitte.com/dtt/press_release/0,1014,sid%253D283...
"Despite a weaker economic outlook sentiment on mergers and acquisitions turned positive in the third quarter."
Forty-eight per cent of [UK] CFOs expect M&A to increase with only 26% expecting a fall. Sentiment about private equity activity has also improved”.
Walesonline, October 18, 2008
http://www.walesonline.co.uk/business-in-wales/business-news...
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Dec 15 2008, 09:09 PMM&A Legend Martin Lipton (Wachtell, Lipton, Rosen & Katz) Predicts 3 - 5 Years' Before Economic Recovery
http://www.law.com/jsp/article.jsp?id=1202425550028
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