2014 was a banner year, but next 12 months may prove more challenging for dealmaking
London: The full-year 2014 edition of Mergermarket’s EMEA Deal Drivers reports a total of 6,286 announced deals worth €671.5bn in 2014 across the EMEA region. This represents an 8% year-on-year (YoY) increase in deal volume, and a 39% rise in deal value.
“Despite a rather slow start to the year, European M&A is poised to build on last year’s momentum in 2015,” said Beranger Guille, Editor, EMEA at Mergermarket. “2014 was our busiest year since 2008 and the large deals rumoured or announced in the past few days will give confidence across all sectors that the EMEA deal pipeline is strong and activity will remain robust over the next few months,” Guille concludes.
Goldman Sachs and JPMorgan top the financial advisory league tables in 2014, with €363.6bn and €293.9bn worth of M&A transactions, respectively. In terms of financial advisers, PwC and KPMG take the top spots by volume, with each respectively completing 247 and 216 deals.
Some key findings in the report include:
- The 39% YoY surge in deal values was fuelled by large gains in the number of deals over €2bn, with only a modest uplift in deals between €5m and €250m.
- The pharma, medical and biotech (PMB) sector made sizeable gains in 2014, as volume increased 17% YoY to 431 deals, and value rose more than twofold to €86.2bn over the same period. Indeed, in EMEA, PMB accounted for the top three announced deals of the year, including Actavis’s €50.5bn acquisition of US-based pharmaceutical company Allergan.
- Technology, media and telecoms (TMT) also had a standout year. Transaction volume increased 10% YoY to 938 deals, while value jumped 18% to €120.4bn. A number of factors underpinned this lift, including the European Commission’s plans to move towards a single telecoms market and pressure to offer quadruple play packages to customers.
- Private equity (PE) buyout volume increased 23% to 1,114 deals, and value rose 46% to €100.7bn. Valuations were driven up markedly compared to 2013: the average EBITDA multiple in 2014 was 75 times earnings, compared to 14.4 in 2013.
- As in 2013, the UK and Ireland remain attractive markets, and drove both 2014 values and volumes for the EMEA region at 24.9% and 23.4%, respectively.
Deal Drivers EMEA is published by Mergermarket, an independent M&A intelligence and data service, in association with Merrill DataSite, and provides an extensive analysis of M&A activity in the EMEA region, including in-depth studies of sector-specific activity, complete with league tables. The report identifies the trends that are expected to emerge over the next six month period.
To view the full report, please click here.