Market Insights Newsletter, June 2015
Merger and acquisition activity continues to soar in the U.S. and Canada. In the twelve month ended May 31, 2015, there were 20,586 M&A transactions in the region. This represents an 8.8% increase year-over-year and a 38.9% increase over 2011 levels.
The most active industries for M&A activity in the last twelve months have been consumer discretionary (23.9%), industrials (20.6%), information technology (20.1%), and materials (7.8%), and healthcare (12.6%).
M&A valuation multiples are also experiencing historical highs, reaching 11.3x EBITDA in May. This represents a 18.4% increase since 2013. The sectors with the most significant increases in valuation multiples since that time include information technology (+45.8%), healthcare (+33.5%), and consumer staples (+23.5%). Below is a table of enterprise value-to-EBITDA multiples by sectors from 2010 to 2015.