The rise of the mega deal

23 July 2019

Download Publications (398.06 KB)

Mergermarket is pleased to present The rise of the mega deal, published in association with Imprima.
 
2018 saw 39 mega deals globally (deals with transaction value above US$10 billion), the second highest number of such deals since the financial crisis. And while the first quarter of the year has seen a dip in M&A activity globally, there have still been 16 mega deals totalling US$535.3 billion in deal value.
 
With this in mind, we asked five experts in M&A from the fields of investment banking, technology and academia to weigh in on trends in mega deal activity and the challenges facing dealmakers at the top end of the market.
 
Points of discussion include:
 
  • Motives driving mega deals: favourable financing conditions, the need to drive growth and the desire to be transformative within their industry may be among the factors driving companies towards large acquisitions.
  • Mega deals and private equity: with record amounts of dry powder available, PEs are increasingly engaging in large deals and benefiting from cheap financing.
  • Challenges to deal activity: the complexity and volume of data involved in mega deals, coupled with competition and the uncertain global political landscape, are among the challenges facing companies.
  • Post-merger integration: company culture, communication, effective planning and a focus on technology are seen as important factors in creating synergies and successfully navigating the post-merger process.