Q3 2015 The Deloitte M&A Index

The Deloitte M&A Index Q3 2015 US companies leading surge in M&A Contacts Key points • The first half of 2015 has emerged as one of the strongest for M&A, with more Iain Macmillan Head of UK M&A than $1.8 trillion worth of deals announced globally, a 22% increase over H1 2014. 020 7007 2975 US corporates are leading this surge fuelled by a strengthening dollar, low funding [email protected] costs and strong earnings. Sriram Prakash • Growth markets are making an impact and in 2014 for the first time outbound Head of M&A M&A from growth markets into G7 countries surpassed inbound M&A from the G7 and Growth Insight 020 7303 3155 into those markets, with China leading the way. The recent Chinese IPO boom is [email protected] expected to boost M&A activity by publicly-listed companies. • However, in Europe despite favourable credit conditions and strong corporate earnings, political and currency risks are weakening confidence among European companies. • Taking these factors into consideration, the Deloitte M&A Index predicts that M&A activity in Q3 will remain at a similar level to Q2. • We expect market conditions to remain favourable and boards to continue reorganising to pursue growth. Our analysis shows that over the last six years, 63 of the FTSE 100 companies had replaced their CEO. A key aspect of this reorganisation is a shift towards CEOs whose skills could be more suited to pursuing growth and M&A opportunities. Figure 1. The Deloitte M&A Index Global M&A deal volumes Q3 2015 M&A 12,000 deal forecast 11,500 11,000 High: 10,700 10,500 Mid: 10,500 10,000 Low: 10,300 9,500 9,000 8,500 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 Deloitte M&A Index (projections) M&A deal volumes (actuals) Last twelve months deal volumes 45,000 Q3 2015 M&A 42,500 deal forecast 40,000 37,500 35,000 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 About the Deloitte M&A Index The Deloitte M&A Index is a forward-looking indicator that forecasts future global M&A deal volumes and identifies the factors influencing conditions for dealmaking. The Deloitte M&A Index has an accuracy rate of over 90% dating back to Q1 2008.