“Merger Madness” was the headline this Monday as $100 billion in deals were announced. Halliburton (acquiring Baker Hughes) and Actavis (acquiring Allergan) shared the spotlight.
These two big deals are just the latest in an already strong year for M&A. The total value for acquisitions of U.S. companies stood at $1.354 trillion before Monday’s news, up nearly 50% from where it stood at this point last year and just ahead of 1999’s total of $1.352 trillion, the previous record for that year to date period. The Halliburton and Allergan deals bring U.S. deal volume a big leap closer to the $1.5 trillion mark, which was just almost reached in 1999 at the height of the dot-com era which U.S. M&A peaked at $1.49 trillion. The $1.46 trillion in announced deals year to date is the highest level on record.
There’s no doubt we are in the midst of an extremely active M&A market driven in part by relatively high valuations and the availability of financing for a broad range of transactions. Record year anyone?