The Market is Poised for Continued Strength in 2015
A quick recap of 2014
A rise in the number of transformational deals of $10 billion-plus in value and an increase in cross-border transactions drove a 27% year over year increase in global M&A activity in 2014. Hernan Cristerna and Chris Ventresca, J.P. Morgan Global Co-Heads of M&A, say that a boost in CEO and boardroom confidence was a critical supporting factor in 2014. As the economic recovery continued, global equities rallied and debt markets remained favorable, our clients became more proactive in using M&A to drive shareholder value. Equity investors rewarded acquirers for sound synergistic acquisitions that generated incremental growth –– the average price reaction to an acquirer’s shares was a gain of 3%¹. Target companies with limited upside from their current stock prices were more willing to entertain takeover proposals at a reasonable premium. This virtuous circle of growth drivers fueled the positive M&A story in 2014.