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US M&A

Latest update: 6 October 2020

After a difficult first half, the US M&A market bifurcated with several high-value transactions coming to market as overall deal count underwhelmed. As the pandemic took hold in the US, there was an initial decline between in new deal announcements, as well as a spike in deal withdrawals and terminations, between March and April. However, activity began to rebound in May as restrictions lessened and dealmakers adapted to remote working.

Despite the apparent rebound, year-to-date activity remains down 46% by value over 30% with 1,353 fewer deals. Year to date there has been 3,412 deals worth USD 696bn compared to 4,765 deals worth USD 1.285tn announced in 1Q19-3Q19.

  • Activity through the year has been tumultuous. Between Q1 and Q2, overall US M&A declined 65% by value and roughly 45% by number of deals. However, the market rebounded more than 400% by value between the second and third quarter, with 1,036 deals announced worth USD 402bn. The total deal value increased 38% over the same period in 2019, which recorded USD 291bn in deal value. Deal count in 3Q20 declined 37% with 581 fewer deals compared to the same period last year.
  • Large deals have returned. At least 19 deals of each more than USD 5bn worth a combined USD 217bn were announced between July and September across a few sectors. The largest deal so far this year is 7-Eleven’s USD 21bn proposed acquisition of Speedway (Consumer) announced in August. The next largest deal was Analog DevicesUSD 20.3bn proposed acquisition of Maxim Integrated Products (Technology), announced in July, and Gilead Sciences’ USD 19.4bn bid for Immunomedics (Pharma, Medical, & Biotech), announced in September.
  • Technology leads activity, doubles market share; business services waned, halving market share. Technology M&A (803 deals worth USD 197bn in 1Q-3Q20) increased by value despite seeing 176 fewer deals compared to the same period last year (979 deals worth USD 180.5bn in 1Q-3Q19). As a result, technology M&A made up 28% of all activity in the US by value, up from 14% in 1Q19-3Q19.
  • In the business services sector, year-to-date activity (5046 deals worth USD 38.6bn in 1Q-3Q20) declined 77% by value compared to last year (695 deals worth USD 165bn in 1Q-3Q19). Business services made up 5.5% of M&A in the US so far this year, down from almost 13% in 1Q19-3Q19.



Top Deals

Deal Value USD(bn)Announced DateTarget CompanyBidder companySeller Company
212-Aug-20Speedway
(Consumer)
7-Eleven
(USA)
Marathon Petroleum Corporation
(USA)
2013-Jul-20Maxim Integrated Products
(Technology)
Analog Devices
(USA)
 
1913-Sep-20Immunomedics
(Pharma, Medical, & Biotech)
Gilead Sciences
(USA)
 
1911-Mar-20OTIS Worldwide Corporation
(Industrials & Chemicals)
United Technologies Corporation (Shareholders)
(USA)
Raytheon Technologies Corporation
(USA)
1623-Sep-20United Shore Financial Services
(Financial Services)
Gores Holdings IV
(USA)









Mergermarket Individual League Table – Legal Advisors  Q1-Q3 US by deal volume

RankNameCurrent HouseValue (GBP M)No. of Deals
1
Michael Aiello
Weil Gotshal & Manges LLP
41202
16
2
Mehdi Khodadad
Sidley Austin LLP
3079
15
3
Mario Mancuso
Kirkland & Ellis LLP
7542
14
4
Adam Phillips
Kirkland & Ellis LLP
2306
14
5
Todd Schneider
Paul Hastings LLP
1465
14

 

Mergermarket Individual League Table – Financial Advisors  Q1-Q3 US by deal volume

RankNameCurrent HouseValue (GBP M)No. of Deals
1
Les Cheek
Robert W. Baird & Co. Incorporated
119
6
2
Elizabeth Bloomer
Raymond James
0
6
3
Mike Lindemann
Robert W. Baird & Co. Incorporated
276
5

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