Mega-deal cycle to continue in 2016

Author: Edward Price | Published: 15 Jan 2016

Despite stock market turmoil in the first quarter of 2016, US counsel believe last year's M&A mega-cycle will continue.

According to a recent memo from Wachtell Lipton Rosen & Katz, global M&A volume in 2015 exceeded $5 trillion. That’s a record high and, as the note suggests, it's a trend the memo suggests will continue this year. 

The factors that shaped M&A over the past 12 months - healthy corporate earnings and cash balances, high stock prices and attractive debt financing for well-capitalised borrowers, to name a few - all remain during the new year.

"It doesn’t feel like there’s a let up in the M&A market so far in 2016," said Adam Emmerich, partner at Wachtell and lead author of the memo.

Adam Emmerich,
Wachtell Lipton Rosen & Katz
One third of 2015 volumes were cross-border deals, and approximately...