The 2014 M&A Report
The 2014 deal rebound, led by the return of megadeals, is lifting market confidence and looks durable, while the quieter rise of divestitures is the trend boards should watch.
Summary
After a disappointing 2013 (volume down 6%, value down 10%), first-half 2014 deal value jumped 62%, with megadeals above $10 billion making up over 35% of it. Such deals lift market confidence and draw sidelined dealmakers back in. Cash reserves at three times the 2000 level, investors favoring aggressive M&A (60% versus 23% in 2012), cheap debt and valuations near historical norms point to continued momentum, with private equity likely to follow. Divestitures, nearly half of 2013 deal value, are the quieter trend.
Editor's opinion
The resurgence of megadeals in 2014 is reshaping deal-market confidence even as a quieter, broader shift in M&A activity unfolds alongside it.
Key concepts
Megadeals · M&A market recovery · Divestitures · Cumulative abnormal return · Deal valuations (EV/EBITDA)