Global M&A up in H1 2010
Global M&A totalled $ 881bn in H1 2010, up 7.8% from H1 2009. Deal count is also up by 13.3% at 5,026 announced deals.
Simpson Thacher & Bartlett led the global rankings
Simpson Thacher & Bartlett advised on 71 deals globally worth $ 145.2bn, up from fourth place in H1 2009. The firm also led the tables in the Americas and in the US. Meanwhile Sullivan & Cromwell topped the European tables, and Herbert Smith/Gleiss Lutz/Stibbe secured the lead by value in Asia-Pacific (ex. Japan) and in Africa & the Middle East.
Private equity up 40% from same period last year
Private equity backed buyouts maintained a steady upward trend: activity is up 40.4% from H1 2009 at $ 75.1bn. However this is well off the H1 peak achieved in 2007 of $ 570.7bn.
Private equity exits via trade sales and secondary buyouts are up 225% from the lows achieved in H1 2009, at $ 76.8bn.Busiest half year for cross-border deals since H1 2008
Cross border transactions between regions made up 25.6% of global M&A by value in H1 2010, the highest half year percentage since H1 2008. $ 68.5bn of inbound M&A activity has been recorded in Europe, a 290% increase from the same period in 2009.
Strong first half for the emerging markets
Emerging markets saw $ 241.1bn worth of deals announced in H1 2010, up 58.8% compared to H1 2009 .
Average EBITDA multiples highest since 2008
The average EBITDA multiple across global M&A for H1 2010 is 14.7x, the highest since 2008. The highest valuations are found in Asia-Pacific where the average EBITDA multiple is 21.5x. Meanwhile, the average premium paid on deals globally was 20.4%, the lowest since 2007.
Highest number of deals over $ 500m since 2007
6.2% of announced deals in 2010 have been valued over $ 500m, the highest percentage since 2007. 312 deals have been announced so far this year with a deal value exceeding $ 500m, compared to 185 for the same time period in 2009 – a 68.6% increase.
European M&A up 24% from H1 2009
European M&A increased during H1 2010 by 24.1% compared to H1 2009 to reach $ 240.3bn. Q2 alone was up 53.8% compared to Q2 2009.
US M&A in H1 2010 down 15% from same period last year
US M&A in H1 2010 was down 15.5% from H1 2009, with a total of $ 331.2bn worth of deals announced in the period. It was the lowest H1 period since 2003.
Asia-Pacific M&A up 11% from H1 2009
Asia-Pacific announced $ 137.2bn worth of deals in H1 2010, up 11.3% from H1 2009. Deal count is also up by 20.9%.
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