Global M&A Driven By Record Valuations

Global M&A continues to rise with over $2.19 trillion recorded in the first half of 2015, according to Dealogic data. This is an increase of 31% from $1.67 trillion announced in the first half of 2014, and the second highest half year volume on record, following $2.59 trillion recorded in 2007. In addition, US targeted M&A reached a half year record high of $1.03 trillion this year, the first time on record any nation has broken the $1 trillion mark in a half year period.

These gains have been driven by an increase in "jumbo" deals, which are mergers that are greater than $5 billion in value, and account for 43% of all activity. Companies may find, however, that these rising valuations result in a difficulty to strike new deals.