There were over 37,000 deals in 2015, amounting to $4.2 trillion. Both Goldman and Morgan Stanley managed about $1.4 trillion in transactions, making 2015 the best year ever.
“We are in the late stages of the M&A cycle but there is still room left to run,” said Gary Posternack, global head of mergers & acquisitions of Barclays Plc in a phone interview. “Next year, we will see a lower value of deals overall but probably a higher number of deals. This year has been dominated by the mega deals and it’s likely that will slow down.”
“There has been a spasm of very large, uncontroversial deals that have either been done, or looked at and decided against. The number of that type of deals will likely fall going into next year,” said Peter Tague, global head of M&A at Citigroup Inc., “but the biggest markets are typically underpinned by a lot of mid-sized deals — and there are plenty of those ahead.”
Good news, right?
Maybe not. The previous two top M&A years were 2002 and 2007. We all know what happened in 2008. Deals were also expensive–the most expensive ever, with acquirers paying more than 1.68x sales.
Nevertheless, the merger and acquisition departments at both Goldman and Morgan are going to be enjoying grandiose bonuses this holiday season. We can all find solace in knowing that, as we barrel into the final days of trade in a cloud of uncertainty.
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“We trained hard, but it seemed that every time we were beginning
to form up into teams, we would be reorganized. I was to learn later
in life that we tend to meet any new situation by reorganizing;
and a wonderful method it can be for creating the illusion of progress
while producing confusion, inefficiency, and demoralization.”
Gaius Petronius Arbiter
Roman Satirist
If only the Romans didnt have that shitty numbering system, they could have minted a fortune with Lloydius Blankfeinius doing M&A instead of suffering Caligula hording Catamites.
Someone has to run the world. That is a fact. MS just laid off 10,000 people at least. Getting thin in the ranks doing gods work. Crazy.
Less employees means sharing the pot with less people.