Our M&A reports in a wide range of industries are essential reading for any senior executive planning to undertake a transaction. They provide detailed analysis of the key global and regional deals in each sector, including the total number and value of those deals, their rationale and the most important changes that have taken place year-on-year. They also assess the impact of current economic conditions and sector-specific trends on the M&A market, together with the immediate outlook for deal-making within each sector.
PwC is pleased to share with you our quarterly analysis of mergers and acquisitions (M&A) activity in the global forest, paper and packaging (“FPP”) industry for the fourth quarter (Q4) of 2015.
"You will see an uptick in M&A, but it will be smarter, more conservative deals and you will start to see greater use of joint ventures and strategic alliances. You aren't going to see the big dollars in riskier jurisdictions." --Brett Mattison, SVP Corporate Development Strategy and Planning, Gold Fields
After an imposing first half of 2014 (H1 2014), PwC continues to maintain a positive outlook for Automotive M&A going forward. Global cross-sector M&A volume increased 6% in the first half of 2014 compared to 2013.
Third Quarter Energy M&A Value Skyrockets Fueled by the Ongoing Upcycle in the Midstream Segment Mega-Deals.
The year is off to a rapid start with deal volume and disclosed value up 19% and 92%, respectively, in Q1 2015 compared to the first quarter of 2014. The most notable sectors were Managed Care, Behavioral Health and Rehabilitation, Physician Practice, and Private Equity while Home Health, Hospitals, and Labs, MRI, & Dialysis lagged behind.
Deal activity remained strong from the prior quarter as there was over $105 billion in announced and pending deals suggesting robust M&A activity may continue into 2015. As companies complete deals, integration becomes critical to achieving synergies. In this publication, we explore some of the methods being used to maximize synergies in the R&D function. Additionally this quarter's report's market spotlight looks at how Canada is essential to the development of future IP for companies within the industry. Canada has focused on becoming one of the most cost-effective countries for clinical development among the Group of Seven (G7) industrialized nations.
Faced with new and challenging market forces, food companies are changing their strategic approach by focusing on capabilities to drive how they organize and operate their businesses. For winning companies, this focus on capabilities is informing their growth path, including their approach mergers, acquisitions, and divestitures.
2015 was a strong year for industrial manufacturing M&A as deal volume increased to its highest total in a decade. Despite a 30% decrease in value compared to 2014, deal value remained well above the ten-year historical average for the sector with $87.2 billion (vs. the $70 billion average).
2015 ends with the December announcement of a $62.1 billion merger between two chemical giants, in an otherwise flat year for M&A in the Chemicals sector.
Deal activity remained strong in the E&C sector for 2015 with 227 deals, while average deal value declined as a result of the acquisition of smaller players in deals aimed at enhancing product offerings and expanding geographic coverage in the E&C landscape.
Deal value almost doubled in 2015 compared to the previous year, driven mainly by a $31.6 billion third-quarter megadeal. While, activity picks up with a 7.8 percent in volume over the same period.
Deal value in T&L sector nearly doubled (from $87 billion to $172.7 billion) in 2015, compared to the previous year, despite a slight decrease in volume over the same period.
2015 was a record year in M&A for the A&D sector with a total deal value of $61.7 billion, nearly three times the value in 2014 and more than 50 percent higher than the previous record year in 2007.
Overall deal value started strong in Q1 '15 despite volume at its lowest point in two years. Although it may be too soon to tell which direction deal volumes will trend in the remainder of 2015, we remain optimistic and expect M&A will continue to be robust for the sector. And with the abandonment of one transformative Cable deal, rumors are swirling about potential deal partners. In this issue, PwC provides a summary of first quarter 2015 deal activity, megadeal activity and an outlook for key sectors.
Q4 2015 North American Power Deals In this quarter’s analysis, we saw an overall drop in power and utilities deal activity as potential acquirers took stock of recent valuations and associated premiums in the evaluation of future growth opportunities.
The recent explosion in M&A activity in the semiconductor industry follows a larger trend of increased deals in the overall Technology sector. Many of the factors affecting the overall Technology Sector such as maturing markets and associated revenue-ASP stresses have also come into play in the semiconductor sector. But a closer look shows that the specific M&A route chosen by the semiconductor companies involved in transactions varies based on three key factors: market segment focus, the growth rate of the market segment and the size of the company.