Capital Market Insights

M&A MARKET

Fueled by a powerful bull market that just had its sixth birthday last week, U.S. Merger and acquisition activity is at an all-time high. Through the last twelve months ended February 27, 2015, there were 21,539 transactions. This represents an 8.9% increase year-over-year and a 27.4% increase over 2011 levels.

The most active industries for M&A activity in the last twelve months have been consumer discretionary (23.7%), industrials (22.6%), information technology (18.6%), and materials (9.5%), and healthcare (9.3%).

M&A valuation multiples are also experiencing historical highs, reaching 11.5x EBITDA last month. This represents a 22.6% increase above the average over the last five years of 9.4x EBITDA. The run up valuations has been particularly pronounced over the last 18 months.

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