Global M&A activity continues strongly

While announced global strategic and financial sponsor-driven M&A deals in Q3 have slowed slightly compared with Q2 of this year, the figure of $1.1trn remains the third-highest quarter of announced deal activity ever recorded.

Q3 has not been without its concerns in terms of economic volatility and the outlook in certain economies, but the figure demonstrates the pent-up demand for deals and ultimately growth by cash-rich corporates, along with financial sponsors, many of which have also been successful in raising new funds in the last 18 months along with those funds whose dry powder remains as yet unallocated. The third quarter was particularly strong for deals greater than $10bn, with 14 being announced totalling just over $405bn, compared with 11 ($322bn) and 17 ($346bn) in Q2 and Q1, respectively. 

Q3’s “mega” deals have been across a diverse range of sectors, proving that no matter which industry a corporate operates in there is still plenty of potential to grow via consolidation.

With the usual frenzy of deal activity that typically takes place in the final quarter of the year, I wouldn’t bet against 2015 proving to be the year finally moves global M&A on from its best-ever year in 2007.