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M&A at a Glance (June 2013)
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June 13, 2013 download PDF
May 2013 saw a number of interesting developments that deviated from recent trends. Following several months of high-volume M&A activity, May 2013 saw the lowest total deal volume since February. While strategic transactions declined significantly, there was an increase in both sponsor-related transactions and crossborder transactions. See Figure 1. Inbound transactions in particular saw a 140% increase since April due to deals originating in Canada and China, which together accounted for 85.3% of the inbound transaction volume in May. See Figures 1 and 3. In the wake of a series of large deals from February through April, the equity value of deals has returned to levels that are more consistent with those of the last 12 months, with the equity value of the largest transaction in May being $6.61 billion (BMC Software, Inc. - GIC Special Investments Pte Ltd, Insight Venture Partners, Golden Gate Capital and Bain Capital, LLC). See Figure 4. Reverse break fees have also normalized relative to the past 12 months, following spikes in April. See Figure 6. However, May 2013 saw a significant increase in the percentage of mergers with go-shop provisions, well above the 12-month average. This increase may be explained by the increased level of mergers involving financial buyers, 75% of which had a go-shop, compared with 30% of mergers involving strategic buyers. See Figure 8. Finally, for the first time since June 2012, there were no hostile offers in the month. See Figure 12.