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September 2016
This Issue:
US M&A News and Trends
U.S. M&A deal activity increased in August, going up 3.0% with U.S. private equity activity increased in August, up 11.8% from
2 US Merger 1,002 announcements compared to 973 in July. However, aggregate July. There were 114 deals in August compared to 102 in July.
M&A spending decreased. In August, 24.3% less was spent on deals Aggregate transaction value also increased, up by 3.7% to $20.0
Metrics compared to July. billion from July's $19.3 billion.
2 US Middle Over the past 3 months, the sectors that have seen the biggest The top financial advisors for 2016 based on deal announcements,
increases in M&A deal activity, relative to the same three month are: JPMorgan Chase & Co, Morgan Stanley, Goldman Sachs & Co.,
Market Monitor
period one year ago, have been: Non-Energy Minerals (72 vs. 57), Evercore Partners, Inc., and Barclays Plc. The top five financial
Utilities (74 vs. 65), Government (12 vs. 4), Consumer Durables (56 advisors, based on the aggregate transaction value of the deals
3 US Sector vs. 50), and Process Industries (132 vs. 127). Seven of the 21 sectors worked on, are: Goldman Sachs & Co., Morgan Stanley, Bank of
Activity & Value tracked by FactSet Mergerstat posted relative gains in deal flow America Merrill Lynch, JPMorgan Chase & Co, and Credit Suisse.
over the last three months compared to the same three months
one year prior. The top legal advisors for 2016 based on deal announcements, are:
4 US Strategic Kirkland & Ellis LLP, Jones Day LP, Latham & Watkins LLP, Skadden,
Buyer Report Over the past 3 months, the sectors that have seen the biggest Arps, Slate, Meagher & Flom LLP, and Morgan, Lewis & Bockius LLP.
declines in M&A deal volume, relative to the same three month The top five legal advisors, based on the aggregate transaction
period one year ago have been: Technology Services (442 vs. 574), value of the deals worked on, are: Sullivan & Cromwell LLP,
4 US Private Equity Finance (334 vs. 455), Commercial Services (425 vs. 536), Consumer Wachtell, Lipton, Rosen & Katz, Skadden, Arps, Slate, Meagher &
Report Services (231 vs. 310), and Health Services (146 vs. 209). Fourteen Flom LLP, Simpson Thacher & Bartlett LLP, and Cravath, Swaine &
of the 21 sectors tracked by FactSet Mergerstat posted negative Moore LLP.
5 Top US Advisors relative losses in deal flow over the last three months compared to
the same three months one year prior, for a combined loss of 706
deals.
6 Top US Deals
Scoreboard Topping the list of the largest deals announced in August are:
Pfizer, Inc. agreeing to acquire Medivation, Inc. for $13.5 billion;
Apollo Global Management LLC's agreement to acquire Rackspace
Hosting, Inc. for $4 billion; A private group led by Platinum Equity
LLC and other co-investors agreeing to acquire Emerson Network
Power from Emerson Electric Co, $4 billion; Mid-America Apartment
Communities, Inc.'s deal to acquire Post Properties, Inc. for $3.9
billion; Alimentation Couche-Tard, Inc.'s agreement to acquire CST
Brands, Inc. for $3.7 billion.
$245.0 $253.3
$250.0 $230.9 $227.6 1,250
$213.2
$206.5
$203.4
$200.0 $169.7 1,000
$172.3
$139.8
$150.0 750
$131.0 $122.0
$95.6 $111.1 $105.8
$91.0
$100.0 500
$50.0 250
1,015 1,252 1,290 1,089 1,148 1199 1,069 1,173 1,135 1,028 1,011 981 941 1,003 973 1002
$0.0 0
May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16
Deal Volume Aggregate Deal Value
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US MergerMetrics September 2016
Merger Stats
Number of Deals Agg. Transaction Value ($Bil)
M&A at a Glance
MEDIAN P/E MEDIAN PREMIUM
30.0x 45.0%
40.0%
25.0x 39.9%
35.0% 38.1%
23.6x
20.0x 22.5x 30.0%
21.4x
25.0%
15.0x 26.2%
20.0%
10.0x 15.0%
10.0%
5.0x
5.0%
0.0x 0.0%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 L3M 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 L3M
10.0x 50.0%
9.7x 49.5%
9.5x 9.5x
8.0x 40.0%
41.2%
6.0x 30.0%
30.1%
4.0x 20.0%
2.0x 10.0%
0.0x 0.0%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 L3M 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 L3M
*Middle Market defined as deals valued between $1 million and $500 million, plus undisclosed deals.
Media: Media quotation with source attribution is encouraged. Reporters requesting additional information or editorial comment shou ld contact
media_request@factset.com. Mergerstat gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness o f the
information provided in this publication. Copyright 2016 FactSet Research Systems Inc. All rights reserved. It is illegal under federal copyright law to reproduce
or redistribute this publication or any portion of its contents without written authorization of the publisher.
FactSet.com Copyright 2016 FactSet Research Systems Inc. All rights reserved. 2
US Sector Activity & Value September 2016
SECTOR BY ACTIVITY
L3M 8/31/16 L3M 8/31/15
Target Sector Deal Count Deal Count Difference
Non-Energy Minerals 72 57 15
Utilities 74 65 9
Government 12 4 8
Consumer Durables 56 50 6
Process Industries 132 127 5
Communications 47 42 5
Energy Minerals 42 37 5
Industrial Services 129 130 (1)
Retail Trade 132 139 (7)
Miscellaneous 8 16 (8)
Producer Manufacturing 172 199 (27)
Transportation 55 82 (27)
Consumer Non-Durables 86 115 (29)
Health Technology 106 136 (30)
Distribution Services 163 193 (30)
Electronic Technology 114 155 (41)
Health Services 146 209 (63)
Consumer Services 231 310 (79)
Commercial Services 425 536 (111)
Finance 334 455 (121)
Technology Services 442 574 (132)
Total 2,978 3,631 (653)
SECTOR BY VALUE
L3M 8/31/16 L3M 8/31/15
Target Sector Value Value Difference
Technology Services $78,925.3 $36,855.8 $42,069.6
Consumer Non-Durables 30,105.5 22,894.2 7,211.3
Government 0.0 187.2 (187.2)
Producer Manufacturing 21,983.4 22,590.4 (607.0)
Consumer Durables 2,728.8 3,911.6 (1,182.8)
Communications 2,574.5 4,153.8 (1,579.3)
Miscellaneous 7.1 2,884.7 (2,877.6)
Transportation 1,330.1 5,466.2 (4,136.1)
Consumer Services 17,942.9 24,281.5 (6,338.6)
Distribution Services 5,173.3 11,992.7 (6,819.5)
Energy Minerals 9,979.9 16,862.8 (6,882.9)
Utilities 16,583.2 23,941.4 (7,358.2)
Electronic Technology 29,133.3 37,754.4 (8,621.1)
Retail Trade 16,970.6 27,791.0 (10,820.4)
Process Industries 10,303.3 24,905.9 (14,602.6)
Commercial Services 13,521.7 28,364.4 (14,842.7)
Industrial Services 10,534.3 29,007.5 (18,473.2)
Non-Energy Minerals 6,625.0 39,022.1 (32,397.2)
Health Technology 25,727.8 71,680.7 (45,952.9)
Finance 55,183.9 132,136.2 (76,952.3)
Health Services 12,299.9 106,374.1 (94,074.3)
Total $367,633.9 $673,058.7 ($305,424.7)
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US Strategic Buyer Report September 2016
Merger Stats
Number of Deals Agg. Transaction Value ($Bil)
12 Months Ended 12 Months Ended Average
Deal Size 8/31/16 8/31/15 Change 8/31/16 8/31/15 Change P/E
$1 Billion + 159 183 -13.1% $806.3 $913.4 -11.7% 35.7
$500M to $999.9M 119 128 -7.0% 83.7 89.8 -6.8% 32.6
$250M to $499.9M 199 194 2.6% 71.7 66.8 7.4% 26.5
$100M to $249.9M 329 386 -14.8% 52.2 61.5 -15.0% 26.4
$50M to $99.9M 282 343 -17.8% 20.2 23.9 -15.2% 21.5
$25M to $49.9M 264 372 -29.0% 9.7 13.3 -26.9% 19.9
$10M to $24.9M 363 501 -27.5% 5.9 8.3 -29.4% 24.2
Under $10M 575 833 -31.0% 2.1 2.9 -28.0% 12.1
Undisclosed 7,260 7,565 -4.0% N/A N/A N/A N/A
Total 9,550 10,505 -9.1% $1051.8 $1179.8 -10.9% 27.5
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Top US Advisors September 2016
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Top US Deals Scoreboard September 2016
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