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Mergers & Acquisitions

Deal Activity Continues to Soar

Merger activity continued to surge in the first half of 2015. The dollar volume of deals involving U.S. publicly traded target companies totaled $523.7 billion in the first half of 2015, according to research by DealPointData. In terms of dollar value, that is 37.2% higher than the first half of 2014. Despite the level of activity, control premiums are not being stretched by acquirers. During the first half of 2015, the average 1 day control premium was 27.75% compared to 27.6% in the first half of 2014.Centerview Partners was at the top of the U.S. public financial adviser's league table, with $177.6 billion in deals. Among legal advisers, Latham & Watkins was the market leader with $161.6 billion in deals announced through June 30.

U.S. Public M&A Deal Terms
June 2015 Last 12 Months
Avg. 1 Day Premium % 34.5% 27.6%
% of Mergers that are Accretive 18.8% 41.1%
Avg. Target Break Fee as % of Equity Value 4.6% 3.5%
Avg. Reverse Break Fee as % of Equity Value 4.8% 5.7%
% of Mergers that were hostile/unsolicited 25.0% 15.0%

Market Leaders - U.S. Public Mergers

Centerview Partners was the top financial adviser on U.S. Public M&A deals announced in the first half of 2015.

Rank Firm Equity Value $bil
1 Centerview Partners LLC 177,659
2 JPMorgan 142,229
3 Bank of America Merrill Lynch 141,770

M&A Adviser Fee Watch

Through the end of June, Goldman Sachs claimed the lead with $237 million in fees already disclosed. Centerview Partners held on to second place among financial advisors in disclosed fees. JPMorgan rounded out the top three in disclosed fees.

High-Yield Bond News

SEC Registered High-Yield New Issue Volume increased in the quarter

The pace of issuance of SEC registered high-yield new issues increased 10.2% in the second quarter with $18.05 billion pricing during the quarter up from $16.37 billion in the first quarter.

High-Yield Bond Covenants

The level of covenant protection increased in deals issued during the month. In May, 40% of SEC registered high-yield deals had limitations on restricted payments covenants compared to 38% of new issues priced in the last twelve months. Limitations of indebtedness covenants were also present in 60% of May's new issues compared to 46% of deals priced in the last twelve months.