11 Dec 2008 - Deal Journal - “M&A is all but dead.”
That was the pronouncement from Deal Journal colleague Matthew Karnitschnig this morning.
Global deal volume fell to $262 billion last month, according to Dealogic. While low, that number is nothing to sneeze at. But exclude the spate of government investments last month and the total tumbles to levels not seen since 2003. For those who have tried hard to forget those barren years, global deal volume reached $1.4 trillion that year and the value of only eight deals topped $10 billion. Now compare that with last year, when $4.5 trillion of deals were announced and more than 30 deals topped $10 billion.
Perhaps more importantly, the value of withdrawn deals is higher than the value of announced deals, Karnitschnig points out. And that fact is hitting investment bank where they don’t want to get hit–in their wallets.
Read more.
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