Major M&A set for record-breaking year

A quarterly report by Allen & Overy shows that, despite a lower number of transactions globally, M&A values look set to exceed pre-financial crisis levels.

Data from Mergermarket shows M&A values rose by 19 per cent in UK Q3 when compared with last year, to US$1.047tn. Volumes decreased by 13 per cent (3,697 deals in Q3 2015, compared to 4,467 deals in Q3 2014), which has been a consistent trend throughout the year.

Strong comeback

Financial Services transactions made a strong comeback this quarter, up by 68 per cent year-on-year. Deal values in the sector so far in 2015 (US$301.6bn) already exceed the total value of deals done in 2014 and 2013.

FinTech ‘one to watch’

The TMT sector had a slightly quieter period than the first half, but one area within the sector where Allen & Overy partners expect to see growth is in the payments space, which is becoming increasingly crowded with FinTech start-ups looking to reach critical mass in a rapidly changing market. Simon Toms, corporate partner at Allen & Overy, commented: ‘The FinTech sector is one to watch, as we’re starting to see increasing funding flow for companies seeking to expand rapidly, which is a good indicator of likely M&A in the near and mid-term.’ Source: Allen & Overy

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