􀀗 Value of global M&A reached sevenyear
low in Q2 2009, but number of
deals gained for first time since Q2 2007
􀀗 Deal activity in emerging markets
rebounded strongly and the block now
accounts for a third of global deal value
(a record high)
􀀗 We expect global M&A to recover from
here as economies stabilise, business
confidence grows and availability of
funds improves
Q2 2009
We see tentative signs the low point in the M&A cycle may
be behind us. The value of global M&A fell to a seven-year
low in Q2 2009, but the number of deals showed the first
quarterly gain since Q2 2007.
Furthermore, looking at the breakdown of activity by region,
we find that deal value fell (quarter-on-quarter) in only two
of our seven regions – North America and Western Europe.
Elsewhere, value rose on the quarter, with emerging markets
in particular showing an impressive rebound. Here, the value
of activity rose 48% in Q2 from Q1, propelling the region’s
share of global deal activity to a record high of 33%.
Private-equity-related activity remained subdued. The value
of deals fell further in Q2, but the number of deals did tick
higher for the second quarter running.
In the securities market, primary equity issuance (IPOs)
stayed low in Q2, although we are seeing signs of
stabilisation. Meanwhile, secondary equity issuance broke
all previous records (quadrupling over the quarter). Debt
issuance was also strong, with the value of issues down only
slightly from the Q1 record value.