2011 M&A Report

M&A MARKET REVIEW AND OUTLOOK

Market Review

M&A activity rebounded significantly in 2010, ending the decline that began in 2008 and continued through 2009. Global M&A deal volume rose from 19,127 transactions in 2009 to 27,460 in 2010, a 44% increase. Similarly, global M&A deal value increased 81% to $2.03 trillion in 2010, up from $1.12 trillion in 2009. Although showing a marked improvement over the 2008 and 2009 numbers, M&A activity has yet to return to the record-setting level of 2007, which boasted 31,883 transactions and a $2.69 trillion deal value.

Average global deal size grew to $73.8 million in 2010, up from $58.4 million the prior year. In addition, the number of deals showed sequential quarterly increases throughout 2010, continuing a trend that began in the second quarter of 2009. Aggregate deal value rose in the first quarter of 2010, only to decline slightly in the next quarter before rebounding in the second half of the year.