Jay Bothwick and Hal Leibowitz are partners at Wilmer Cutler Pickering Hale and Dorr LLP. This post is based on a WilmerHale publication.
Market Review and Outlook
Review
In 2016, the number of reported M&A transactions worldwide dipped by 2%, from a record 34,838 deals in 2015 to 34,191, but still represented the second-highest annual tally since 2000. Worldwide M&A deal value decreased 16%, from $3.64 trillion to $3.06 trillion—a total that was still the third-highest annual figure since 2000, lagging behind only 2015’s record tally and 2007’s $3.17 trillion result.
The average deal size in 2016 was $89.4 million, 14% below 2015’s average of $104.5 million, and just shy of 2014’s average of $91.0 million, but 40% above the annual average of $64.0 million for the five-year period preceding 2014.
The number of worldwide billion-dollar transactions decreased 9%, from 540 in 2015 to 489 in 2016. Aggregate worldwide billion-dollar deal value declined 21%, from $2.68 trillion to $2.11 trillion.