After Record 2015, M&A Market Returns to Earth

M&A Market Thru 2016 Q3

Merger and acquisition deal value fell 17.8 percent in the first three quarters of 2016 compared to the same period last year, even as the number of deals rose 6.8 percent, according to Bloomberg Law data.

Deals in the third quarter fell compared to both the previous quarter and the same period a year earlier.

In the third quarter this year, deal value and deal count both declined compared to the second quarter, falling 9.1 and 8.4 percent, respectively. These declines are the first quarter-over-quarter declines from the second to third quarter since at least 2012.

The third quarter of 2016 also experienced year-over-year declines of aggregate deal values and deal count (decreases of 29.5 percent and 10.8 percent from 2015, respectively).

The M&A market is falling back to earth after hitting record levels in 2015 when total deal volume reached $2,522.9 billion.

Between 2012 to 2015, deal count increased 26 percent and aggregate deal value increased 221.6 percent.

For more on the latest trends in M&A, Bloomberg Law subscribers can access our Quarterly M&A Market Update.