M&A Market Update 2018 U.S. Annual Year in Review
Notable Trends in 2018
United States M&A investment remains high despite declining deal count.
In 2018, a large number of mega-deals closed with 53 deals closing at over $5 billion dollars. Although deal count dropped 9.6% compared to 2017, total capital invested to M&A was over $1.44 trillion, an 8% increase. Median deal size was the highest recorded at $65.5 million.
Private Equity continues decade-long climb. Private Equity (PE) activity remained strong in 2018 extending a 10-year trend of increased deal volume. Buyouts accounted for more than half of all transactions for the second consecutive year including several large transactions. Buyout deals accounted 54.7% of transaction volume in 2018 up from 32.4% in 2009.
Valuation multiples remain high, despite falling in consecutive years. M&A activity remains strong despite valuation multiples declining from 2016 historic highs of 10.53x. Valuation multiples of 9.89x reflect high competition and affordable financing for buyers.
