Daily News: January 28, 2014

Global M&A Activity Reaches Six-Year High

The year 2013 showed solid activity in the global M&A market across all sectors due to a favorable lending environment allowing for increased leverage, historically low interest rates, increased corporate cash, private equity exits and an uptick in cross-border activity, according to Greenberg Advisors’ Quarterly M&A Update.

The ARM and RCM markets saw their fair share of activity as well, though the year was by no means without challenges, Greenberg Advisors’ said.

Aggregate transaction value in 2013 was $2.1 billion, a 33% lift over 2012, and represents the only calendar year since 2007 where total value exceeded the $2 billion threshold. Two larger transactions in 2013 helped contribute to the increase: the $354 million acquisition of UK-based Cabot Credit Management by JC Flowers and the $439 million acquisition by Arvato AG of Norway-based Gothia Financial Group AS.

During 2013, a total of 45 transactions closed, down from 60 transactions in 2012. The $2.1 billion total for 2013 is well above the average of $1.8 billion for the prior six TTM periods, as illustrated in the exhibit below:

The United States and United Kingdom dominated the activity throughout the year. U.S. buyers represented 63% of transactions in 2013, while U.S. targets accounted for 55%. Buyers and sellers from the United Kingdom account for a larger proportion than all other non-U.S. players combined, representing 24% of all buyers and 31% of all targets in 2013.

To read the entire M&A update click here.