AT A GL ANCE 2016 Year-End Roundup - Paul, Weiss › media › 3886688 › 17jan17mayearend.pdf ·...
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Global U.S. 0 2,000 4,000 6,000 Crossborder Transactions Sponsor-Related Transactions Strategic Transactions Total 2014 2015 2016 US$B 1 $3,707.38 $2,930.87 $776.52 $1,393.26 $4,349.51 $3,346.63 $1,002.88 $1,423.00 $3,461.57 $2,573.76 $887.81 $1,089.59 0 1,000 2,000 3,000 Outbound Crossborder Transactions Inbound Crossborder Transactions Sponsor-Related Transactions Strategic Transactions Total 2014 2015 2016 US$B 2 2 $1,656.84 $1,260.15 $396.69 $487.93 $268.85 $1,982.62 $1,391.09 $591.52 $419.36 $237.07 $1,417.65 $993.30 $424.35 $270.26 $201.98 2016 Year-End Roundup PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP 1 Global crossborder transactions are those where the acquirer and the target have different nationalities. Nationality is based on where a company has either its headquarters or a majority of its operations. 2 U.S. crossborder transactions are those transactions where the acquirer and the target have different nationalities and either the acquirer (“Outbound”) or the target ( “Inbound”) has a U.S. nationality. Nationality is based on where a company has either its headquarters or a majority of its operations. M&A Activity Figure 1 - Deal Volume Figures 1, 3 and 4 were compiled using data from Dealogic, and are for the broader M&A market, including mergers of any value involving public and/or private entities. Figure 2 was compiled using data from FactSet MergerMetrics, and is limited to mergers involving public U.S. targets announced during the period indicated and valued at $100 million or higher regardless of whether a definitive merger agreement was reached and filed or withdrawn. All data is as of January 11, 2017 unless otherwise specified. Data obtained from Dealogic and FactSet MergerMetrics has not been reviewed for accuracy by Paul, Weiss. $0 $10000 $20000 $30000 $40000 $50000 Average Value of Ten Largest U.S. Public Mergers Average Value of U.S. Public Mergers 2014 2015 2016 US$M $3,740.22 $37,084.17 $4,938.68 $43,943.72 $4,458.63 $44,417.77 Figure 2 - Average Value of Announced U.S. Public Mergers 1 A T A G L A N C E
Transcript of AT A GL ANCE 2016 Year-End Roundup - Paul, Weiss › media › 3886688 › 17jan17mayearend.pdf ·...
Global
U.S.
0
2,000
4,000
6,000
Crossborder TransactionsSponsor-Related Transactions
Strategic TransactionsTotal
201420152016
US$B
1
$3,707.38$2,930.87
$776.52$1,393.26
$4,349.51
$3,346.63
$1,002.88$1,423.00
$3,461.57
$2,573.76
$887.81 $1,089.59
0
1,000
2,000
3,000
Outbound Crossborder TransactionsInbound Crossborder Transactions
Sponsor-Related TransactionsStrategic TransactionsTotal
201420152016
US$B
2
2
$1,656.84$1,260.15
$396.69 $487.93$268.85
$1,982.62
$1,391.09
$591.52$419.36 $237.07
$1,417.65$993.30
$424.35 $270.26 $201.98
2016 Year-End Roundup
P A U L , W E I S S , R I F K I N D , W H A R T O N & G A R R I S O N L L P
1 Globalcrossbordertransactionsarethosewheretheacquirerandthetargethavedifferentnationalities.Nationalityisbasedonwhereacompanyhaseitheritsheadquartersoramajorityofitsoperations.2 U.S.crossbordertransactionsarethosetransactionswheretheacquirerandthetargethavedifferentnationalitiesandeithertheacquirer(“Outbound”)orthetarget(“Inbound”)hasaU.S.nationality.Nationalityisbasedonwhereacompanyhaseitheritsheadquartersoramajorityofitsoperations.
M&AActivity
Figure 1 - DealVolume
Figures1,3and4werecompiledusingdatafromDealogic,andareforthebroaderM&Amarket,includingmergersofanyvalue involving public and/or private entities.Figure2wascompiledusingdatafromFactSetMergerMetrics,andislimitedtomergersinvolvingpublicU.S.targetsannounced during the period indicated and valuedat$100millionorhigherregardlessofwhetheradefinitivemergeragreementwasreachedandfiledorwithdrawn.AlldataisasofJanuary11,2017unlessotherwisespecified.DataobtainedfromDealogicand FactSet MergerMetrics has not been reviewedforaccuracybyPaul,Weiss.
$0
$10000
$20000
$30000
$40000
$50000
Average Value of Ten Largest U.S. Public MergersAverage Value of U.S. Public Mergers
201420152016
US$M
$3,740.22
$37,084.17
$4,938.68
$43,943.72
$4,458.63
$44,417.77
Figure 2 -AverageValueofAnnouncedU.S.PublicMergers
1
A T A G L A N C E
Inbound U.S. Crossborder TransactionsByVolume(US$B)
ByNumberofDeals
Outbound U.S. Crossborder TransactionsByVolume(US$B)
ByNumberofDeals
Figure 3 -Top5CountriesofOriginorDestinationfor2016U.S.CrossborderTransactionsandPriorYearComparisons2
A T A G L A N C E
M&AActivity(Continued)
0
30
60
90
120
150
JapanChinaUnited KingdomGermanyCanada
US$B
2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014
$116.21
$90.07
$40.30
$88.50
$17.43
$71.18$82.43
$72.08
$31.29
$68.25
$11.95 $13.54
$33.80 $34.45 $36.16
$0
$20
$40
$60
$80
FranceCanadaGermanyThe NetherlandsUnited Kingdom
US$B
2016 2015 2014 2016 2015 2016 2015 20142014 2016 2015 2014 2016 2015 2014
$69.64 $67.33
$56.98
$49.00
$9.98 $1.93
$48.10
$15.94$8.55
$13.79 $14.73
$28.60
$12.06$20.15 $18.81
050
100150200250300350400450500
GermanyChinaUnited KingdomJapanCanada2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014
400358
186155 148
180205 209
167
11773 66 75 79
426
050
100150200250300350400450
FranceGermanyAustraliaCanadaUnited Kingdom2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014
325 307 292310
387
303
94 101 11090
107 12174
10281
Note: In 2015, Israel and the Netherlands were ranked among the top five countries of origin, with volumes of US$B 44.44 and US$B 36.32, respectively. In 2014, Switzerland was ranked among the top five countries of origin, with a volume of US$B 14.80.
Note: In 2015, Spain was ranked among the top five countries of destination, with a volume of US$B 28.59. In 2014, Belgium was ranked among the top five countries of destination, with a volume of US$B 8.87.
Note: In 2014, Brazil was ranked among the top five countries of destination, with 91 deals.
Note: In 2014, France was ranked among the top five countries of origin, with 83 deals.
P A U L , W E I S S , R I F K I N D , W H A R T O N & G A R R I S O N L L P 2
3 IndustrycategoriesaredeterminedandnamedbyDealogic.4 IndustrycategoriesaredeterminedandnamedbyDealogic.5 Figures5-10werecompiledusingdatafromFactSetMergerMetrics.Figures5,6,7,9and10arelimitedtoselectmergersinvolvingpublicU.S.targetsannouncedduringtheperiodindicated,valuedat$100millionorhigherandforwhichadefinitivemergeragreementwasreachedandfiled.Figure8includesbothannouncedtransactionsforwhichadefinitivemergeragreementwasreachedandfiledandthoseforwhichadefinitivemergeragreementwasneverreachedandfiled(includingwithdrawntransactions.)DataobtainedfromFactSetMergerMetricshasnotbeenreviewedforaccuracybyPaul,Weiss.
6 Basedonthehighesttargetbreakfeesandreversebreakfeespayableinaparticulardeal.7 Duetorounding,percentagesmaynotaddupto100%.
Figure 6 -FormofConsiderationas%ofU.S.PublicMergers7Figure 5 -AverageBreakFeesas%ofEquityValue6
05
10152025
20142015201620.1% 22.8% 21.7%
OtherChoice (Cash Election)Cash & Stock OnlyStock OnlyCash Only
201420152016
50.3%53.3%15.8%
15.8%
63.0%
15.2%
19.3%
11.7%0.5%
10.8%
19.1%
19.7%
5.4%
M&ATerms5
Figure7-TenderOffersas%ofU.S.PublicMergers
3
4
5
6
7
8
Reverse Break Fee for Mergers Involving Strategic Buyers
Reverse Break Fee for Mergers Involving Financial Buyers
Reverse Break FeeTarget Break Fee
201420152016
4.3%5.0%
3.6%3.5%
6.5%
4.8%
3.4%
5.5%
7.4%
6.3%
4.8%5.2%
ByVolume(US$B)3
ByNumberofDeals4
0
100
200
300
400
500
Leisure & RecreationOil & GasHealthcareUtility & EnergyComputers & Electronics
$296.75
US$B
$334.56
$173.84
2016 2015 2014 2016 2015 2014 2016 20142015 2016 2015 2014 2016 2015 2014
$203.10
$76.18
$143.03$176.57
$416.90
$327.99
$140.38$104.87
$123.62 $129.47
$13.43$23.29
0
500
1000
1500
2000
2500
3000
3500
Oil & GasFinanceHealthcareProfessional ServicesComputers & Electronics2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014 2016 2015 2014
2,444
2,842
1,1311,282
1,717
1,0171,211
969
525 612 646404 356 506
2,479
Figure 4 - Most Active U.S. Target Industries
Note: In 2015, Telecommunications, Real Estate/Property and Finance were ranked among the top five industries, with US$B 161.19, US$B 137.23 and US$B 128.67, respectively. In 2014, Telecommunications was ranked among the top five industries, with US$B 94.10
Note: In 2015, Real Estate/Property was ranked among the top five industries, with 460 deals.
A T A G L A N C E
M&AActivity(Continued)
P A U L , W E I S S , R I F K I N D , W H A R T O N & G A R R I S O N L L P 3
Figure8- U.S. Public Merger Go-Shop Provisions
NEW YORK BEIJING HONG KONG LONDON TOKYO TORONTO WASHINGTON, D.C. WILMINGTON
U.S. Public Merger Go-Shop Provisions
2016 2015 2014
% of Mergers with Go-Shops 10.9 11.2 7.6
% of Mergers Involving Financial Buyers with Go-Shops
46.9 34.8 33.3
% of Mergers Involving Strategic Buyers with Go-Shops
3.3 8.0 4.3
Avg. Go-Shop Window (in Days) for All Mergers with Go-Shops
34.4 35.7 32.4
Avg. Go-Shop Window (in Days) for Mergers Involving Financial Buyers with Go-Shops
34.2 36.0 32.3
Avg. Go-Shop Window (in Days) for Mergers Involving Strategic Buyers with Go-Shops
35.0 35.5 32.5
M&ATerms(Continued)
Figure 10 -%ofPartialandAllStockDealsthatHaveaFixedExchangeRatio
0
20
40
60
80
100
20142015201687.9% 88.5%94.1%
4
A T A G L A N C E
Figure9-Hostile/UnsolicitedOffersas%ofU.S.PublicMergers
0
5
10
15
20
20142015201613.0% 15.7%13.9%
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Recenthighlightsinclude:advisingTimeWarnerCableinits$79billionmergerwithCharterCommunications;representingQualcomminitsapproximately$47billionpendingacquisitionofNXPSemiconductors;advisingAgriuminits$36billionpendingmergerofequalswithPotashCorp.ofSaskatchewan;representingfundsaffiliatedwithApolloGlobalManagementandProtection1intheir$15billionacquisitionofADTCorporation;advisingAlereinits$8billionpendingacquisitionbyAbbottLaboratories;representingEXORinitssuccessful$7billionunsolicitedcashbidforPartnerRe;advisingJeffreyKatzenberginDreamWorksAnimation’s$4billionacquisitionbyComcast;andrepresentingtheBoardofDirectorsofXeroxinitsplantoseparatethecompanyintotwopubliccompanies.
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5©2017Paul,Weiss,Rifkind,Wharton&GarrisonLLP.Insomejurisdictions,thispublicationmaybeconsideredattorneyadvertising.Pastrepresentationsarenoguaranteeoffutureoutcomes.
P A U L , W E I S S , R I F K I N D , W H A R T O N & G A R R I S O N L L P P A U L W E I S S . C O M
NEW YORK BEIJING HONG KONG LONDON TOKYO TORONTO WASHINGTON, D.C. WILMINGTON
Matthew W. Abbott
EdwardT.Ackerman
ScottA.Barshay
Angelo Bonvino
JeanetteK.Chan
Ellen N. Ching
ArielJ.Deckelbaum
Ross A. Fieldston
Brian P. Finnegan
AdamM.Givertz
RobertD.Goldbaum
NeilGoldman
Bruce A. Gutenplan
JustinG.Hamill
David M. Klein
DavidK.Lakhdhir
StephenP.Lamb
JohnE.Lange
XiaoyuGregLiu
Brian C. Lavin
JeffreyD.Marell
KelleyD.Parker
Carl L. Reisner
Kenneth M. Schneider
RobertB.Schumer
JohnM.Scott
JudieNgShortell
Tarun M. Stewart
StevenJ.Williams
BettyYap
KayeN.Yoshino
Tong Yu
Taurie M. Zeitzer
This publication is not intended to provide legal advice, and no legal or business decisions should be based on its content. Questionsconcerningissuesaddressedinthismemorandumshouldbedirectedto:
Our M&A Partners
Ariel J. Deckelbaum Partner NewYork 212-373-3546 [email protected]
Scott A. Barshay Partner NewYorkOffice 212-373-3040 [email protected]
Matthew W. Abbott Partner NewYork 212-373-3402 [email protected]
Angelo Bonvino Partner NewYork 212-373-3570 [email protected]
Jeffrey D. Marell Partner NewYork 212-373-3105 [email protected]
A T A G L A N C E
CounselFrancesF.Mi,associatesRyanD.Blicher,DavidS.Lightstone,EdyGlozmanandN.ArieAbramovandlawclerksYaeNaWoo,DavidOkadaandMichaelWysolmerskicontributedtothispublication.
