Mergers & acquisitions and the capital markets: 2017 in review

  • Strong Mergers and Acquisitions (M&A) activity by historical standards
    • Global deal volume: ~$3.4 trillion as of Dec. 18, down about 3% from the same period in 2016
    • US deal volume: $1.4 trillion, down about 11%
    • Despite a 2 year decline, global deal volume remains above $3 trillion and US deal volume remains above $1 trillion for the 4th consecutive year
    • Globally and in the US, deal count remained relatively unchanged
  • US listed Initial Public Offerings (IPOs) reached a 3 year high
    • Issuance on the US exchanges totaled $47.8bn via 179 IPOs (as of November 30th, 2017)
    • Technology became once again the top sector for US-listed IPO volume with $12 billion raised by 34 companies
    • There were 33 Special Purpose Acquisition Company (SPAC) IPOs, representing the highest activity since full-year 2007
    • Almost 1 in 5 IPOs in 2017 was withdrawn in favor of an M&A transaction
  • Venture capital reached a new high with $148+ billion invested
    • Deal count declined for a 2nd year from a high of 19,000 in 2015
    • Fewer deals and bigger rounds emerged as trends in the industry
    • 8 US companies raised $500+ million rounds
    • Venture capital raised and new funds declined from a record year in 2016
  • Private equity fundraising hit a record high at $450+ billion
    • Private equity backed leveraged buyout activity remained strong, in line with the prior 3 years
    • Public-to-private and deals valued at $1+ billion surged as a percentage of total deals
    • More than 50% of middle market buyouts are leveraged at more than 6x Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)
  • Corporate bond issuance hit new record highs in the US and globally
    • Global corporate bond volume: $2.48 trillion
    • Global corporate high-yield volume: $496.8 billion
 Source: Mergermarket

Source: Mergermarket

 Source: Dealogic

Source: Dealogic

 Source: Dealogic

Source: Dealogic