The research which was put together in partnership with Cass Business School also reveals that the market for large deals of over $1 billion returned in the first quarter of 2015, with 41 having closed. Towers Watson said this figure is an all-time high for the corresponding period.
Asia-Pacific was once again the most active part of the world, a lead it has held since the beginning of 2014. Next came Europe, with North America the least active of the major regions.
“This level of M&A activity is unusual for the early part of the year, with pharmaceuticals accounting for the bulk of very large deals completed in 2015 so far,” said Steve Allan, M&A practice leader EMEA at Towers Watson. “There is a prevailing trend of outperformance for acquirers and consistency across sectors, with acquirers in general outperforming their industry peers, with the notable exception of the financial sector.”
“It is worth considering that this hive of activity is taking place against a backdrop of political uncertainty in the UK with the budget announcement this week and the election coming up in May, which is affecting what has traditionally been the world’s second largest market,” Allan continued.
“Of course, the first quarter of next year will have similar external pressures and influences with the US election then on the horizon. With this in mind, the current picture is very much a moveable feast, making it impossible to predict how long the current M&A boom will last,” he added.
