U.S. M&A Market: News & Trends

In its monthly US M&A News and Trends repot, FactSet Research Systems provides an update on the space. The note highlights seven trends seen over the past few months.

• M&A deal activity in the U.S. fell 6.3 percent in May, which saw 903 announcements – versus April’s 964. Nonetheless, aggregate M&A spending rose: May saw spending double in comparison to April.
• Over the past 3 months, the sectors that witnessed the largest year-over-year increases in M&A activity are Technology Services (526 vs. 477), Distribution Services (173 vs. 129), Finance (411 vs. 370), Health Services (144 vs. 125), and Communications (42 vs. 30).
• In the past three-month period, the largest year-over-year declines were registered in the Commercial Services (443 vs. 476), Consumer Services (207 vs. 234), Producer Manufacturing (171 vs. 195), Consumer Non-Durables (68 vs. 86), and Industrial Services (101 vs. 117) sectors.
• The biggest deals announced last month are: Charter Communications, Inc. CHTR’s acquisition of Time Warner Cable Inc TWC for $55 billion; Monsanto Company MON offer of $44 billion to purchase Syngenta AG (ADR) SYT; Avago Technologies Ltd AVGO’s deal to buy Broadcom Corporation BRCM for $35 billion; Williams Companies Inc WMB’s agreement to get its hands on the remaining 42 percent it did not own Williams Partners LP WPZ for $13.8 billion; and Danaher Corporation DHR purchase of Pall Corporation PLL for $13.6 billion
• U.S. private equity activity rose 2.2 percent month-over-month in May.
• “Canadian firms were the biggest buyers of U.S. companies in May. They announced 30 deals for the month, with U.K. companies in second with 19 deals, followed by Japan, China, and Germany.”
• The top financial advisors for this year, based on deal announcements and “the aggregate transaction value of the deals worked on,” are: Goldman Sachs & Co., Morgan Stanley, JPMorgan Chase & Co, Bank of America Merrill Lynch, and Citigroup.
• The top legal advisors for 2015 include: Kirkland & Ellis LLP, Skadden, Arps, Slate, Meagher & Flom LLP, Sullivan & Cromwell LLP, and Davis Polk & Wardwell LLP, among others.