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Global M&A deal value rises by 25 per cent

Global mergers and acquisitions deal value totalled USD1,422.9bn for the first three quarters of 2010, up 25 per cent from the same period in 2009, according to research from mergermarket.

Global mergers and acquisitions deal value totalled USD1,422.9bn for the first three quarters of 2010, up 25 per cent from the same period in 2009, according to research from mergermarket.

Deal count was also up by 18 per cent at 8,102 announced deals.

Skadden Arps Slate Meagher & Flom is the leading legal adviser, having advised on 139 deals worth a total of USD245.1bn in the first three quarters of 2010. It also leads the tables in the Americas with 119 deals worth USD198.7bn, though in Europe it comes just behind first-placed Slaughter & May. In Asia Pacific, Herbert Smith/Gleiss Lutz/Stibbe top the tables.

Private equity-backed buyouts reached USD69.8bn in Q3 2010, the highest quarter since Q2 2008. Activity for the first nine months of the year had a total value of USD151.3bn, 94.2 per cent more than the same time period in 2009.

Cross-border activity between regions has reached USD390.7bn so far this year, up 109 per cent compared to the first three quarters of 2009. The largest cross-border deal so far this year is also the largest overall deal of the year – BHP Billiton’s hostile USD41.9bn bid for Potash. Cross-border deal flow makes up 27.5 per cent of all global activity so far this year, the second highest percentage on mergermarket record.

The emerging markets saw USD357.8bn worth of deals announced in Q1-Q3 2010, up 52.1 per cent from the same period in 2009. However, activity dipped in Q3 2010 with only USD98.6bn worth of deals announced, the lowest since Q3 2009. European inbound and outbound M&A dominated the majority of activity in the emerging markets in Q1 to Q3 2010.

The average Ebitda multiple across global M&A for 2010 to date is 14.4x, the highest since 2008. The highest valuations have been seen in the Asia Pacific region, where the average Ebitda multiple is 18.5x.

In Q1 to Q3 6.4 per cent of announced deals were valued over USD500m, the highest proportion since 2007. A total of 515 deals with a deal value exceeding USD500m have been announced so far this year, compared to 323 for the same period in 2009, a 59.4 per cent increase.

European M&A is up 51.3 per cent by value and 19.2 per cent by deal count from the same period last year.

US M&A is down 1.6 per cent by value and up 25.4 per cent by deal count from Q1-Q3 2009.

Asia Pacific M&A is up 23.7 per cent by deal value from the same period last year.

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