Deal volumes still strong despite market uncertainty
World M&A markets are proving resilient in the face of increased global volatility, with more than 20,000 M&A transactions announced in the first half of 2016.
Global deal volumes are 5% down on last year’s all-time high for acquisition activity, according to new data from Thomson Reuters.
The impact of risks such as the UK’s decision to leave the European Union, ongoing unrest in the Middle East, and recessions in key emerging markets, have led to a more subdued deal landscape in recent months.
However, the market fundamentals driving deal activity are still in play, and good businesses are still selling across diverse sectors. Current key M&A drivers include the ageing population in developed markets driving healthcare innovations, the greening of the energy sector, and the disruptive role of technology across most industries.
Europe accounted for 34% of deal activity in the first half of 2016, with North America generating 27% share, Asia Pacific 27%, and the rest of the world accounting for 12%.