Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
Global M&A UpdateFourth Quarter 2015
- 1 -Investment Banking Corporate Finance Strategy Consulting
Global Mergers & Acquisitions Update
Fourth Quarter 2015
Global M&A UpdateFourth Quarter 2015
- 2 -
6.1x
8.7x
7.9x8.2x
5.6x
6.5x6.9x
9.0x
6.0x 5.9x
8.6x
10.5x
5.9x6.6x
7.5x
8.8x
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
US$10-25M US$25-50M US$50-100M US$100-250M
Q1 2015 Q2 2015 Q3 2015 Q4 2015
Historical Private Equity M&A Multiples (By Transaction Size)
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
J F M A M J J A S O N D
S&P 500^SPX
Dow Jones^DJI
NASDAQ^COMP
Current M&A Trends:
• Middle-market private equity reported deals’ TEV/EBITDA multiples averaged 6.5x for
TEVs between US$10-250 million.
• Equity contribution for reported middle-market private equity M&A deal funding
decreased slightly in Q4 2015 to 44.1%, down from 44.2% in Q3 2015.
• Deals involving better performers (TTM EBITDA margins and revenue growth rates both
above 10%) accounted for 56% of reported activity in 2015, well in line with the historical
average of 57%
Selected Transactions:
• Merck Kommanditgesellschaft auf Aktien, a German multinational chemical,
pharmaceutical and life sciences company, acquired Sigma-Aldrich Corporation, an
American chemical, life science and biotechnology company, for US$16.1 billion. The
transaction value represents a multiple of 19.4x EBITDA and 5.8x Revenue.
• Lockheed Martin Corporation, a global aerospace, defense, security and advanced
technologies company, acquired Sikorsky Aircraft Corporation, an American aircraft
manufacturer, for US$9.1 billion. The transaction value represents a multiple of 14.9x
EBITDA and 1.4x Revenue.
United States
US Sees Increased M&A Activity During 2015:
With total deal value at US$432 billion, Q4 2015 saw a 10.4% decrease in deal value from Q3 2015. There were 5,212 announced transactions during Q3 2015, representing a 1.9% increase
from Q3 2015. Compared to Q4 2014, deal value increased by 2.1% and deal volume decreased 4.3%. During Q4 2015, the average deal size was approximately US$193 million. The median
TEV/EBITDA multiple for disclosed deals during the quarter was 12.1x.
U.S. M&A Transactions
Corporate M&A Activity and Equity Market Performance
Sources: Capital IQ, GF Data Resources, and Mergermarket
Quarterly Equity and Debt Contributions
M&A Trends and Transactions
Private Equity-Sponsored M&A Activity
LTM Equity Market Performance (% Change)
8.2%
7.1%
6.2%
Global M&A UpdateFourth Quarter 2015
- 3 -
-40.0%
-35.0%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
J F M A M J J A S O N D
Argentinian Peso (ARS) Brazilian Real (BRL)
Chilean Peso (CLP) Mexican Peso (MXN)
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
J F M A M J J A S O N D
Brazil^BVSP
Mexico^MXX
Argentina^MERV
Chile^IPSA
Current M&A Trends:
• The most active sectors for M&A deal volume in the region were the Financial,
Consumer Staples, and Industrial sectors.
• In Q4 2015, there were a total of three announced transactions with a TEV greater than
US$1 billion in Latin America.
• The Top 3 most active buyers/investors in the region by total transaction value were
British American Tobacco Americas Prestacao de Servicos Ltda., Antofagasta plc, and
Coty Geneva S.A. Versoix.
Latin America
Latin America M&A Sees Increased Activity, but Lower Aggregate Deal Value in 2015:
With total deal value at US$17 billion, Q4 2015 saw a 43.8% increase in deal value from Q3 2015. There were 507 announced transactions during Q4 2015, representing a 24.3% increase
from Q3 2015. Compared to Q4 2014, deal value decreased by 31.1% while deal volume increased 20.4%. During Q4 2015, the average deal size was approximately US$96 million. The
median TEV/EBITDA multiple for disclosed deals during the quarter was 13.1x.
Latin America M&A Transactions
Corporate M&A Activity and Equity Market Performance
Sources: Capital IQ, GF Data Resources, and Mergermarket
LTM Currency Market Performance relative to U.S. Dollar
M&A Trends and Transactions
Currency and Interest Rate Performance
LTM Equity Market Performance (% Change)
1.6%
-4.3%
20.1%
-0.8%
3-month 10-year 3-month 10-year
Argentina 22.39%* NA 22.00%* NA
Brazil 13.93% 12.00% 10.80% 12.10%
Chile 0.48% 4.69% 0.72% 4.78%
Mexico 3.31% 6.03% 3.31% 7.75%
*New series
Selected Short and Long-Term Interest
RatesAs of June 30, 2015
Current 1 Year Ago
1.2%
-27.1%
0.0%
-1.5%
Selected Transactions:
• Editora Ática S.A., an educational book publisher based in Brazil, acquired Saraiva
Educacao Ltda., a book publishing services company also based in Brazil, for
US$181.7 million. The transaction value represents a multiple of 4.6x EBITDA.
• TOTVS S.A., the largest Latin American corporate software company, acquired
Bematech SA, Brazil’s leading commercial automation company serving retail stores,
for US$139.1 million. The transaction value represents a multiple of 15.2x EBITDA and
1.3x Revenue.
Global M&A UpdateFourth Quarter 2015
- 4 -
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
J F M A M J J A S O N D
British Pound (GBP) Euro (EUR)
Russian Rouble (RUB) Swiss Franc (CHF)
-15.0%
0.0%
15.0%
30.0%
45.0%
J F M A M J J A S O N D
England^FTSE
France^FCHI
Germany^DAXI
Russia^RTSI
3-month 10-year 3-month 10-year
Britain 0.56% 2.10% 0.55% 2.92%
France -0.01% 1.25% 0.21% 1.64%
Germany -0.01% 0.89% 0.21% 1.29%
Russia 13.60% 10.00% 9.46% 8.53%
Current 1 Year Ago
Selected Short and Long-Term Interest
RatesAs of June 30, 2015
-2.5%
-10.5%
-3.0%
-2.6%
Current M&A Trends:
• The Top 3 most active European buyers/investors in Q4 2015 by total transaction size
were Wandle Holdings Limited, Macquarie AirFinance, and Bpifrance Investissement
• The most active sectors for M&A deal volume in the region were the Real Estate,
Industrial, and Consumer Discretionary sectors.
• The most active European buyers/investors in Q4 2015 by total number of transactions
were MMK-Finans Investment Company OOO (22), LLC Wings of Urals (14), and AEW
UK (9).
Selected Transactions:
• Apollo Global Management, LLC, a publicly-owned investment manager, acquired
Verallia SA, a manufacturer of glass bottles and jars for the global food and beverage
industries, for US$3.2 billion. The transaction value represents a multiple of 7.4x
EBITDA and 1.2x Revenue.
• Platform Specialty Products Corporation, a global, diversified producer of high
technology specialty chemical products and provider of technical services, acquired
Alent plc, a leading global supplier of advanced surface treatment plating chemicals
and electronics assembly materials, for US$2.0 billion. The transaction value represents
a multiple of 12.7x EBITDA and 2.1x Revenue.
Europe
M&A Activity Increases and Deal Values Stay Strong in 2015:
With total deal value at US$210 billion, Q4 2015 saw a 36.0% decrease in deal value from Q3 2015. There were 5,660 announced transactions during Q4 2015, representing a 14.2% increase
from Q3 2015. Compared to Q4 2014, deal value decreased by 18.7% and deal volume increased 20.8%. During Q4 2015, the average deal size was approximately US$140 million. The
median TEV/EBITDA multiple for disclosed deals during the quarter was 9.5x.
Europe M&A Transactions
Corporate M&A Activity and Equity Market Performance
Sources: Capital IQ, GF Data Resources, and Mergermarket
LTM Currency Market Performance relative to U.S. Dollar
M&A Trends and Transactions
Currency and Interest Rate Performance
LTM Equity Market Performance (% Change)
8.1%
-3.2%
2.8%
5.7%
Global M&A UpdateFourth Quarter 2015
- 5 -
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
J F M A M J J A S O N D
Australian Dollar (AUD) Hong Kong Dollar (HKD)
Indian Rupee (INR) Japanese Yen (JPY)
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
J F M A M J J A S O N D
Hong Kong^HSI
Japan^N225
Korea^KS11
India^BSESN
3-month 10-year 3-month 10-year
Hong Kong 0.39% 1.81% 0.38% 2.11%
India 7.62% 7.74% 8.50% 8.66%
Japan 0.10% 0.41% 0.13% 0.56%
South Korea 1.59% 2.50% 2.64% 3.11%
*USD denominated bonds
1 Year Ago
Selected Short and Long-Term Interest
RatesAs of June 30, 2015
Current
7.7%
Current M&A Trends:
• The top Asia/Pacific M&A sectors during Q4 2015 included Real Estate, Consumer
Discretionary, and Industrials.
• The Top 3 most active regional buyers/investors in the current quarter by number of
transactions were GCL-Poly Limited (11), Kenedix Real Estate Fund Management, Inc.
(11), and Chengdu Fulin Business Management Co., Ltd. (10).
• The Top 3 most active regional buyers/investors in Q4 2015 by total transaction size
were Hwaseung Enterprise, Spark Infrastructure, and Hastings Funds Management
Selected Transactions:
• Fidelity National Information Services, Inc., a financial services technology company,
acquired SunGard Data Systems Inc., a leading financial software solutions & services
provider, for US$9.9 billion. The transaction value represents a multiple of 16.3x EBITDA
and 3.5x Revenue.
• China Mobile Limited, an investment holding company that provides mobile
telecommunications and related services in Mainland China and Hong Kong, acquired
China TieTong Telecommunications Corporation, a major state-owned basic
telecommunications operator in China, for US$5.3 billion. The transaction value
represents a multiple of 5.0x EBITDA and 1.5x Revenue.
Asia/Pacific
Asian M&A Sees Increased Activity in 2015:
With total deal value at US$254 billion, Q4 2015 saw a 49.9% increase in deal value from Q3 2015. There were 4,873 announced transactions during Q4 2015, representing a 45.3% increase
from Q3 2015. Compared to Q4 2014, deal value increased by 21.4% while deal volume increased 16.9%. During Q4 2015, the average deal size was approximately US$112 million. The
median TEV/EBITDA multiple for disclosed deals during the quarter was 13.4x.
Asia/Pacific M&A Transactions
Corporate M&A Activity and Equity Market Performance
Sources: Capital IQ, GF Data Resources, and Mergermarket
LTM Currency Market Performance relative to U.S. Dollar
M&A Trends and Transactions
Currency and Interest Rate Performance
LTM Equity Market Performance (% Change)
1.2%
7.4%
1.4%
-0.7%
0.0%
-2.6%
-0.5%
Global M&A UpdateFourth Quarter 2015
- 6 -
Seale & Associates is a global investment banking firm with extensive experience in
mergers and acquisitions (M&A), corporate finance advisory, and enterprise level strategy
consulting. Our professionals are trusted advisors maintaining a high level of quality and
integrity while presenting innovative ideas and solutions to address our clients’ most
complex dealings. All securities related transactions are cleared through Seale Capital,
Inc., an affiliate company, registered broker dealer and FINRA and SIPC member.
Seale & Associates, Inc.
950 N. Glebe Rd.
Suite 950
Arlington, Virginia 22203
United States
Phone: +1 (703) 294-6770
Fax: +1 (703) 294-6790
www.sealeassociates.com
Washington, D.C. Mexico City, Mexico
Leadership Team
James A. Seale
President
Brett M. Carmel
Senior Managing Director
Robert E. Whitney
Managing Director
Felipe Bueno Viesca
Managing Director – Latin America
Martin B. Cohen
Senior Director
Henry W. Levine
Senior Director
Paul Roessel
Senior Director
John Schauss
Senior Director