The report also shows that acquiring companies around the world continued to outperform the market this quarter, with an average performance of 5.2 percentage points (pp) above a global index2. Mid-cap deals are currently generating the highest return, with acquirers closing medium-sized deals with a performance of 5.4pp above the index, compared to larger deals of over $1 billion averaging a 4pp return. \u201cSlow\u201d deals, which had a time to completion of 70 days or more, significantly outperformed the index at 10.5pp compared to \u201cquick\u201d deals currently at 3.5pp.<\/p>\n
Fran\u00e7ois Cheynet, International Consulting Group Director, Towers Watson France, said: \u201cThis has been a particularly strong third quarter for completed deals, globally speaking, from both a volume and performance perspective. Also noteworthy in this quarter is the re-emergence of the mega-deal market, with two deals having a value of over $10 billion being completed. Whilst the re-emergence of a vibrant M&A market has been foretold many times we are now seeing both good deal volumes and exceptionally strong outperformance from completed deals. Indeed, we may now be looking at the beginning of the next merger-wave.\u201d<\/em><\/p>\n The Asia-Pacific region was once again the outstanding performer this quarter, with Asian acquirers achieving an impressive outperformance of 14.1pp above their regional index. This is the third consecutive quarter that the Asia-Pacific region has shown a performance over 10pp; a significant North America maintains its regional dominance in terms of M&A volumes, with 121 deals completed in Q3 2014 so far, almost 60 per cent of global activity. Concurrently, there was a fall in the quarterly performance in this region against the regional index; in the third quarter buyers outperformed the regional index by 2.8pp \u2013 their lowest recorded outperformance since Q4 2012. <\/p>\n Meanwhile this year\u2019s results show that acquirers involved in cross-border deals had lower levels of outperformance than deals within a country\u2019s borders: 4.4pp against the index for cross-border deals Fran\u00e7ois Cheynet said: \u201cWhile some companies are struggling to achieve their desired levels of Year-to-date acquirers in all sectors have performed well against industry indices, led notably by \u201cAll in all this quarter\u2019s results are encouraging and paint a picture of rapidly growing M&A activity in all There were more M&A deals1 completed globally in the third quarter of
\nimprovement upon the region\u2019s 2013 figures. In the three-year rolling analysis, Asia-Pacific acquirers are also in the top spot with a performance of 5.5pp above their regional index followed by North American and European acquirers, which have outperformed their regional index over the same period by 3pp and 2.7pp respectively. <\/p>\n
\ncompared to 9.0pp on a year-to-date basis for domestic deal makers.<\/p>\n
\noutperformance when engaged in cross-border deals, if we look at the broader picture over the longer
\nterm there is an enduring pattern of strong results for acquirers. The three-year rolling average
\nperformance for acquirers globally is currently 2.8pp and the average performance since our Quarterly Deals Performance Monitor began in the first quarter of 2008 is 3pp.\u201d<\/em><\/p>\n
\nconsumer staples, healthcare and high-tech. Those bolder companies expanding outside their sector
\nare performing significantly better than intra-sector deals with year-to-date performances of 11.3pp and
\n6.1pp respectively. It seems that cross-sector acquirers are capitalising on the interest they attract from
\nbeing a new face in a market and on the growth synergies available within cross-sector deals.<\/p>\n
\nsectors and across all regions. The most consistent theme we see in this research is the
\noutperformance of acquirers across the board against global, regional and industry-specific indices. In
\naddition, investors are becoming increasingly aware that those buyers, which do more than simply close deals and successfully integrate the acquired businesses, are more likely to produce sustained longer-term performance.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"
\n2014 than in any prior equivalent period for the last six years according to Towers Watson\u2019s Quarterly Deal Performance Monitor (QDPM). The research \u2013 run in partnership with Cass Business School \u2013 shows that deal volumes are on track to make 2014 the strongest year for M&A since 2012, with 564 deals over $100 million completed so far. <\/p>\n","protected":false},"author":20,"featured_media":37006,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1671,1888,1651,1437,1803,2091,2016],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/37008"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=37008"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/37008\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/37006"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=37008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=37008"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=37008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}