Goldman Sachs maintained the top position for worldwide announced M&A advisory work during full year 2012, a position the firm also held during full year 2011. Morgan Stanley took the second spot for worldwide M&A. Goldman Sachs also maintained its industry-leading position in the US, Europe and Asia Pacific for the second consecutive year. Barclays moved four places to take the third spot for worldwide financial advisory for full year 2012.
Worldwide M&A Falls 4% from 2011; Slowest Annual Period for Deal Making since 2010
Announced worldwide M&A totals US$2,356 billion so far this year, a decline of 4% compared to year-to-date 2011, and is the slowest year-to-date period for worldwide M&A since 2010 (US$2,315 billion). Americas targets accounted for 49% of global activity in the year-to-date period, ahead of Europe (US$657 billion, 28%).
Spinoffs, Divestitures Account for Highest Percentage of M&A since 1992
Worldwide spinoff and divestiture activity totals US$1,103 billion so far during 2012, accounting for 47% of worldwide M&A value, levels not seen since full year 1992 when spinoff and divestitures also accounted for 47% of announced M&A value. In the United States, spinoffs and divestitures account for 53% of announced deal activity this year, the highest percentage since records began in 1980.
Energy & Power, Financials and Materials Lead All Sectors; Consumer Staples and Retail Register Gains
M&A in the energy and power sector reached US$444.6 billion so far during 2012, down 13% from year-to-date 2011, while M&A in the financials sector totaled US$256.2 billion so far in 2012, down 23% from last year at this time. Two sectors - retail and consumer staples - have registered double-digit percentage gains over 2011 levels.
Buyside Financial Sponsor M&A Down 12%; US Accounts for 51%
Global private equity backed M&A totaled US$267 billion during year-to-date 2012, a 12% decrease over 2011 levels. Fourth quarter activity saw a 7% decrease over the third quarter of this year, the first quarterly decline for PE-backed this year. Private equity-backed M&A targeting the US reached US$136.6 billion during year-to-date 2012, accounting for 51% of annual activity.
Emerging Markets M&A Falls 16%; Cross-Border Up 5%
Year-to-date figures for emerging markets target M&A have reached US$275 billion, accounting for 12% of total M&A, down 16% compared to full year 2011. Chinese M&A activity accounted for nearly 40% of emerging markets acquirors and targets during full year 2012. Registering an increase of 5% from last year at this time, cross-border M&A totaled US$892.2 billion during 2012, accounting for 38% of total M&A activity this year compared to 35% during year-to-date 2011. The US initiated 22% of all acquisitions abroad so far in 2012 ahead of the Japan (9%) and the United Kingdom (8%), while the US, UK and Canada were the target of 38% of all cross-border acquisitions.
Leon Saunders Calvert, Head of Banking & Research for EMEA at Thomson Reuters, commented: 'If 2011 was the year of two halves, with a positive first 6 months followed by deteriorating activity post Eurozone crisis, then 2012 has been the year of stagnation. The US stands out as the market which has recovered best. But even in the US deal activity is safe - focused on divestitures, spin-offs and share buy backs, rather than bold and transformative transactions. Asia and emerging markets have been limited by the lack of appetite from the West for higher risk, cross border activity, and European M&A has predictably continued to be seriously depressed by the ongoing, unresolved Eurozone crisis. Confidence is the lifeblood of M&A and, until this returns with a degree of zeal, investment banks and other advisers are going to continue to struggle for deal-making fee opportunities'.