Decline in Global M&A Activity

There has been a significant drop in both the volume and value of global mergers and acquisitions (M&A) in the first half of 2016, according to information collected by M&A database Zephyr.

In total, there were 43,352 deals worth a combined USD 1,941,538 million in the opening six months of the year, compared to 53,287 deals worth USD 3,270,736 million in the second half of 2015.

Zephyr shows that the decline in value comes as a result of decreased deal volumes in H1 2016, combined with fewer “mega” deals being signed off over the six months. 

“It was always going to be challenging for 2016 to keep up with the blistering pace of M&A deal making set in 2015 and many will have been concerned that activity would not be able to sustain the levels recorded last year,” explained Lisa Wright, Zephyr director. “To that end, H1 appears to have confirmed many people’s worst fears.”

“However, it is worth noting that in every year since 2012 the second half of the year has performed better than the first in terms of value,” she said. “It would not be unheard of for activity to improve significantly over the course of the coming six months, in which case we could be looking at a very different picture at the end of December in terms of figures for the whole of 2016.”

“The recent Brexit vote by the UK has caused consternation in the global financial markets, and the current uncertainty around the global markets could impede upon deal making appetites for the remainder of the year,” she added. 

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