After steady increases in U.S. M&A deal values since May, November saw a decline in aggregate U.S. deal value of 30%, led primarily by declines in strategic deal value, as well as in the number of transactions, which decreased by 19%. Global declines were less marked; in fact, sponsor deal values increased by 14%.

Key Takeaways

  • After steady increases in US M&A deal values since May, November saw a decline in aggregate US deal value of 30%, led primarily by declines in strategic deal value, as well as in the number of transactions, which decreased by 19%. Global declines were less marked; in fact, sponsor deal values increased by 14%.
  • Crossborder activity was mixed, with a 9% increase in the number of inbound US deals and a whopping 452% increase in US outbound deal value (largely driven by S&P Global's $43.2 billion acquisition of HIS Markit Ltd). Total inbound US deal values decreased by 34% however and outbound US deal counts decreased by 10%.
  • The UK and Germany were the top countries for outbound US and inbound US transactions by deal value, respectively, and the UK and Canada were the top for outbound and inbound transactions by deal count, in each case consistent with their positions over the last 12 months (LTM).
  • Computer & Electronics remained the top industry by dollar value and deal count for November and LTM. Construction/Building saw an increase of 2,881% in deal value, driven by Home Depot Inc.'s $11.1 billion acquisition of HD Supply Holdings Inc.
  • US public merger highlights include the following:
    • The frequency of all-cash deals was considerably higher than in the LTM, constituting 86% of all deals in November compared with 55% LTM.
    • 43% of deals involved a tender offer, an increase over the 31% LTM.
    • Reverse break fees averaged 7% compared to 5% LTM.
    • Unaffected premium percentage rose to 39%, more in line with the 41% average seen LTM than the 31% seen in October.
    • Average deal value dropped from $7.1 million in October to $1.8 million in November, the lowest monthly average since May 2020 and the largest month-over-month drop of the year.

December 15, 2020 Download PDF

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