The Deloitte M&A Index Q3 2015 | 9 Sectors M&A sector trends Figure 9. Global deal values by target sector ($bn), 2014-15 YTD The surge in M&A has been led by the Life 450 Sciences and Healthcare (LSHC) and the 400 Telecoms, Media and Technology (TMT) 350 sectors. In the TMT sector, $434 billion worth 300 of deals have been announced, an increase of 250 44 per cent over H1 2014. TMT is followed by 200 the LSHC sector, where $304 billion of deals 150 have been announced, an increase of 37 per 100 cent over first half of 2014. Disclosed deal values ($bn)50 0 & e , Spotlight on pharmaceutical M&A gy ces Life Real The combination of challenging economic Business inancialServices Services Estateia andelecoms conditions and sector dynamics is driving ConsumerEnerResourF Healthcar ofessional echnologyMedT the surge in healthcare M&A. Some of the Sciences and Pr T Manufacturing key drivers include the rebuilding of drug portfolios and the disposing of non-core H1 2014 H2 2014 2015 YTD operations. In addition, companies are Source: Deloitte analysis based on data from Thomson One Banker consolidating to mitigate the expected cost pressures from governments and insurers and Figure 10. Total volumes and values of M&A involving pharmaceutical improve their operational efficiency. companies ($bn), 2000-15 YTD Deal volumes Disclosed deal values ($bn) So far in 2015, $200 billion worth of 900 300 acquisitions have been announced involving 750 250 pharmaceutical companies, the highest 600 200 H1 figure for well over a decade. This includes two hostile deals worth $77 billion announced 450 150 earlier this year. 300 100 150 50 The current M&A wave is likely to continue 0 0 until major pharmaceutical companies fully D align their portfolios and trim their product 200020012002200320042005200620072008200920102011201220132014 lines. Once the cycle is complete, we expect 2015 YT companies will pursue smaller deals with more Deal volumes Deal values ($bn) ce: Deloitte analysis based on data from Thomson One Banker innovative deal structures such as venturing Sour to tap into the opportunities brought by the convergence in some parts of the healthcare, insurance and technology sectors.