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Mergers & Acquisitions

U.S. Public M&A Highlights - Activity Accelerated in April

In April, $59.9 billion in U.S. public M&A deals were announced. Deal activity increased by 47.9% on an equity value basis over March and 319% from a year ago when $14.3 billion in new deals were announced. Nineteen definitive agreements were reached during the month, which represents the highest number of deals in the last five months. Financial services, technology and healthcare were the most active industry sectors by deal volume. Seventeen deals were closed during April totaling $44.3 billion. Wachtell Lipton was the top ranked legal advisor in April, having advised on $30.3 billion in U.S. public deals. Gibson, Dunn & Crutcher and Cooley also led the market ranking second and third with $24 and $9.7 billion respectively.

April Deal Points - U.S. Public Targets
April 2016 Last 12 Months
Avg. 1 Day Premium 29.55% 31.74%
% of Mergers that are Accretive 41.7% 37.2%
Avg. Target Break Fee as % of Equity Value 3.5% 3.6%
Avg. Reverse Break Fee as % of Equity Value 4.9% 5.3%
% of Deals that were hostile/unsolicited 15.5% 15.9%

Market Leaders - U.S. Public Mergers

Evercore Partners was the top ranked financial advisor on U.S. public M&A deals announced during April. Evercore announced six deals during the month valued at $39 billion. Driven by the surge in new deals, Evercore climbed into second place in the year-to-date ranking through the end of April. Goldman Sachs remained in first place on a year-to-date basis.

Rank Firm Equity Value ($bil)
1 Evercore Partners 30.0
2 Bank of America 27.4
3 Guggenheim Partners 24.1

M&A Adviser Fee Watch

$558 million in M&A advisory fees involving U.S. public targets have been disclosed through May 1. Goldman, Sachs & Co. led the market with $168 million in fees disclosed. Morgan Stanley took second place among financial advisors in disclosed fees. JPMorgan rounded out the top three.

High-Yield Bond News

New Issue Volume

In April, 6 S.E.C. registered high-yield new issues were priced raising $3.625 billion. New issue dollar volume in April was 63.75% less than the amount raised in March.

High-Yield Bond Covenants

We evaluated the covenants in April's S.E.C. registered new issues and found that only 17% contained limitation on restricted payments provisions down from 23% for similar deals priced in March. Limitations of indebtedness covenants were present in 50% of new issues compared to 31% of March deals.