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.
|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%|
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|
|3||Bank of America Merrill Lynch||141,770|
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.
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.
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.