Billion Dollar Deals: What's in Store for 2014?
The latest Intralinks DFI data forecasts a 16 percent increase in year-on-year (YoY) early-stage global M&A activity.
29 April 2014
As Jerry Maguire would say, “Show me the money!” Throughout last year, deal volumes were high – with an exceedingly large number of billion dollar deals globally. Before we jump into the forecast for 2014, let's pause for a moment and remember some of 2013's highlights. Here are just a few of the biggest multi-billion dollar transactions made in 2013 based on deal volume:
- Verizon and Vodafone (Transaction Value: ~$130 Billion) – Noted as one of 2013’s biggest deals of all-time, Verizon’s buy out of Verizon Wireless from Vodafone for $130 billion will definitely be one to remember.
- Berkshire Hathaway and H.J Heinz (Transaction Value: ~$28 Billion) – Warren Buffet’s Berkshire Hathaway and private equity partner 3G Capital acquired well-known ketchup maker H.J Heinz in February 2013.
- Michael Dell and Dell (Transaction Value: ~$25 Billion) – Michael Dell and private equity firm Silverlake were able to buy back computer company Dell and take it private after 25 years.
- Liberty Global and Virgin Media (Transaction Value: ~$23 Billion) – A very notable deal, Liberty Global acquired Virgin Media, as a result, becoming one of the largest broadband communications companies globally.
- Comcast and NBCUniversal (Transaction Value: ~$17 Billion) – Comcast buys NBCUniversal Media from General Electric, a deal that ended General Electric's longtime relationship with NBC.
So what’s the M&A outlook for 2014? The latest Intralinks Deal Flow Indicator™(DFI), a unique predictive look at global M&A activity about six months ahead of deals being announced, forecasts sustained momentum in M&A activity through 2014. We've seen a strong revival in deal activity over 2013, and the recent report suggests dealmakers are in for a treat this year too. The latest data, compiled through the end of March 2014, forecasts a 16 percent increase in year-on-year (YoY) early-stage global M&A activity. Here are just a few highlights from the recent Intralinks DFI report:
- North America - North American early-stage M&A activity grew 11 percent YoY, sustaining some of the momentum in this market from 2013. While deal volume was down 6 percent quarter-on-quarter (QoQ) laregly due to a seasonal effect, the US market remains strong.
- Europe, Middle East and Africa (EMEA) - Europe continues to perform strongly, with a 21 percent YoY increase, paired with a 5 percent increase QoQ.
- Emerging Markets - Deal volume in Latin America increased 13 percent YoY, but was down 10 percent QoQ. In contrast, deal activity levels in the Asia Pacific region jumped 18 percent YoY and 10 percent QoQ.
Based on this data, we expect to see more deal announcements throughout 2014, especially in sectors like technology, telecommunication, media and entertainment and consumer products. With deals like Facebook /Oculus and Comcast/Time Warner Cable kicking off 2014, it will be interesting to see what deals get announced over the rest of this year.
Meagan Parrish is the Senior Manager of Social Media at Intralinks. She is responsible for social media strategy development and the communications for Intralinks' online communities. Meagan has been creating social media strategies for a variety of companies across verticals for the past several years. She holds Bachelor degrees in Marketing and Finance, with a minor in English Literature.