Return of the Megadeal

14 March 2018

Download Publications (878.41 KB)

Megadeals are back. Within the first two months of 2018, 25 M&A deals valued at US$4bn or more were announced. Companies with cash on hand and the need to transform their business model are increasingly seeking high-value targets, while financial buyers continue their search for new advantages in the market via dry powder. These market conditions have many dealmakers expecting an increase in the number of megadeals over the next year.

In order to understand the dynamics expected to drive megadeals in the coming months, Toppan Vintage commissioned Mergermarket to interview leading experts in the field.

Key findings include:

  • The majority of respondents believe the number of megadeals deals will increase, with 56% saying there will be 5-15 more transactions than last year, while 12% argue volume will increase by more than 15 deals.
  • Top sectors to spur megadeals according to experts include Energy, Mining & Utilities (52%) and Technology (44%).
  • Nearly two-thirds of respondents (64%) believe that 40-60% of megadeals will be cross-border in nature.