M&A at a Glance (April 2014)

March 2014 saw mixed results for global M&A, with deal volume decreasing from February 2014 to $240.45 billion due to declining average transaction value despite an increase in the number of deals from 2,593 to 2,947.  U.S. transaction volume took a particularly large hit, declining 69 percent overall (from $167.30 billion to $51.41 billion) and 80 percent in strategic transactions (from $137.36 billion to $28.12 billion) this month. Figure 1. No industry sector saw even $10 billion in transaction volume for the month, an occurrence last seen in August 2013.  Figure 2.  Switzerland led all other countries in U.S. inbound crossborder transaction volume for the month with $4.17 billion and took the fifth spot in the same category over the last twelve months with $7.73 billion.  In a middling month for U.S. outbound crossborder transactions, the top two countries of destination by volume, the United Kingdom ($1.22 billion) and Canada ($0.85 billion), did not even reach their respective average monthly volume over the last twelve months ($1.27 billion and $1.53 billion, respectively).  Figure 3.  March 2014 was a light month for U.S. public transactions valued at $100 million or more, with only five such transactions.  The average value of such transactions, at $2.41 billion, is among the highest it has been in the past year, due in large part to the acquisition of Safeway, Inc. by an Investment Group, valued at $8.33 billion.  Figures 4-6.  The average reverse break fee as a percentage of deal value in March 2014 was 3.0%, the lowest of any of the past 12 months.  Figure 6.  Finally, we note that none of the March deals involved a tender offer or hostile/unsolicited bid.  Figures 11-12.