6 | The Deloitte M&A Index Q3 2015 Spotlight on growth markets Rebalancing the M&A flows Figure 6. M&A transactions flows – G7 vs growth markets ($bn), In 2014, for the first time cross-border 2007-15 YTD outbound M&A investment from growth G7 advanced economies Growth markets outbound deal markets into G7 countries exceeded G7 outbound deal values into the values into the G7 advanced outbound M&A investment into growth growth markets economies markets. Last year growth market companies 18.8 2015 YTD 28.7 announced $45 billion worth of deals into 36.5 2014 44.6 G7 countries, whereas companies from G7 countries announced only $37 billion worth 55.1 2013 22.1 of M&A deals into growth markets. 48.5 2012 34.9 This trend is continuing in 2015 and to date 67.8 2011 30.9 nearly $29 billion worth of deals have been 57.8 2010 40.9 announced by growth market companies 39.0 2009 21.2 in G7 countries, whereas only $19 billion of outbound deals were announced by G7 in 65.1 2008 44.1 growth markets. 112.2 2007 98.0 While China is the most active growth market 120 100 80 60 40 20 0 020406080 100 120 Disclosed deal values ($bn) dealmaker, we can expect to see more deal Note: The G7 comprises of Canada, France, Italy, Germany, Japan, UK and USA. flows from countries such as India, Mexico The growth markets are defined as: Brazil, China (incl. Hong Kong), Czech Republic, and Turkey in future. Growth markets will Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Morocco, Peru, Philippines, continue to offer growth prospects, such as Poland, Russian Federation, South Africa, Taiwan, Thailand, Turkey, Saudi Arabia, ASEAN Economic Community (AEC) which United Arab Emirates. We define growth markets as countries referenced in The Economist as emerging markets in 2012. aims to integrate the region economically and Source: Deloitte analysis based on data from Thomson One Banker create the world’s seventh largest economy.