US M&A News and Trends - Financial Research

[Pages:6]FLASHWIRE US MONTHLY

January 2024

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US M&A News and Trends

U.S. M&A deal activity decreased in December, going down 14.1% with 962 announcements compared to 1,120 in November. However, aggregate M&A spending increased. In December 40.1% more was spent on deals compared to November.

U.S. private equity activity increased in December up 6.6% from November. There were 113 deals in December compared to 106 in November. Aggregate transaction value also increased, up by 14.3% to $26.5 billion from November's $23.2 billion.

Over the past 3 months, the sectors that have seen the most increases in M&A deal activity relative to the same three-month period one year ago have been: Industrial Services (214 vs. 201), Producer Manufacturing (208 vs. 203), Miscellaneous (11 vs. 8) and Energy Minerals (26 vs. 24).

Over the past 3 months, the sectors that have seen the most declines in M&A deal volume, relative to the same three-month period one year ago have been: Finance (514 vs. 797), Technology Services (565 vs. 729), Commercial Services (494 vs. 587), Consumer Services (239 vs. 325) and Health Services (129 vs. 178). Sixteen of the 21 sectors tracked by FactSet Mergers posted negative relative losses in deal flow over 893 deals.

Topping the list of the largest deals announced in December are: Aon Plc entering an agreement to acquire NFP Corp. from Madison Dearborn Partners LLC for $13.6 billion; Bristol Myers Squibb Co.'s agreement to acquire Karuna Therapeutics, Inc. for $12.5 billion; Nippon Steel North America, Inc., a subsidiary of Nippon Steel Corp., agreeing to acquire United States Steel Corp. for $12.3 billion; Occidental Petroleum Corp.'s deal to acquire CrownRock LP, a joint venture between CrownQuest Operating LLC and Lime Rock Management LP, for $10.8 billion; AbbVie, Inc.'s agreement to acquire Cerevel Therapeutics Holdings, Inc. for $8.2 billion.

The top financial advisors for 2023 based on deal announcements, are: BDO LLP, Goldman Sachs & Co., JPMorgan Chase & Co, Houlihan Lokey, Inc. and Jefferies LLC. The top five financial advisors, based on the aggregate transaction value of the deals worked on, are: Goldman Sachs & Co., JPMorgan Chase & Co, Morgan Stanley, BofA Securities and Citigroup.

The top legal advisors for 2023 based on deal announcements, are: Kirkland & Ellis LLP, Latham & Watkins LLP, Goodwin Procter LLP, Gibson, Dunn & Crutcher LLP and Cooley LLP. The top five legal advisors, based on the aggregate transaction value of the deals worked on, are: Kirkland & Ellis LLP, Wachtell, Lipton, Rosen & Katz, Sullivan & Cromwell LLP, Latham & Watkins LLP and Skadden, Arps, Slate, Meagher & Flom LLP.

The US Mergers & Acquisitions Market Index

250.0

232.2

3,500

200.0 150.0

175.4

151.9

152.0

100.0

81.2

127.3

141.5

136.2 125.9

131.5

118.0

106.2

94.5

74.0

3,000

102.8

144.1

2,500 2,000 1,500

1,000

50.0 500

1,450 1,460 1,387 1,459 1,529 1236 1,438 1,184 1,351 1,360 1,138 1,267 1,191 1,298 1,120 962

.0

0

Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23

Deal Volume

Aggregate Deal Value

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January 2024

US MergerMetrics

Merger Stats

Deal Size $1 Billion + $500M to $999.9M $250M to $499.9M $100M to $249.9M $50M to $99.9M $25M to $49.9M $10M to $24.9M Under $10M Undisclosed Total

Number of Deals

12 Months Ended

12/31/23

12/31/22

Change

286

330

-13.3%

214

262

-18.3%

246

371

-33.7%

406

588

-31.0%

317

471

-32.7%

345

515

-33.0%

405 1,109 11,746 15,074

683 1,430 14,448 19,098

-40.7% -22.4% -18.7% -21.1%

Agg Transaction Value ($Bil)

12 Months Ended

12/31/23

12/31/22

Change

$1,191.9 149.9 85.1

$1,407.8 180.8 130.1

-15.3% -17.1% -34.6%

62.8

92.9

-32.4%

22.5

33.3

-32.5%

12.2

18.3

-33.1%

6.7 3.0 N/A $1,534.2

11.1 4.4 N/A

$1,878.7

-39.8% -31.0%

N/A -18.3%

Average P/E

24.8 28.7 12.2 24.5 11.8 18.3 23.0 7.3 N/A 22.5

M&A at a Glance

MEDIAN P/E

25.0x

20.0x 15.0x 17.1x 10.0x 5.0x

20.6x

15.8x

0.0x 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23

MEDIAN PREMIUM

50.0%

40.0%

30.0% 20.0%

29.7%

41.0%

43.9%

10.0%

0.0% 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23

US Middle Market Monitor

Median EV/EBITDA

10.0x 9.0x 8.0x 7.0x 6.0x 5.0x 4.0x 3.0x 2.0x 1.0x 0.0x

8.1x 4Q21

1Q22

2Q22

3Q22

8.9x 4Q22

1Q23

2Q23

3Q23

8.9x 4Q23

MEDIAN PREMIUM

70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0%

0.0%

40.7% 4Q21

1Q22

2Q22

3Q22

38.7% 4Q22

1Q23

2Q23

3Q23

52.2% 4Q23

*Middle Market defined as deals valued between $1 million and $500 million.

Media: Media quotation with source attribution is encouraged. Reporters requesting additional information or editorial comment should contact media_request@. Mergerstat gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness of the information provided in this publication. Copyright 2024 FactSet Research Systems Inc. All rights reserved. It is illegal under federal copyright law to reproduce or redistribute this publication or any portion of its contents without written authorization of the publisher.

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January 2024

US Sector Activity & Value

SECTOR BY ACTIVITY

Target Sector

Industrial Services Producer Manufacturing Miscellaneous Energy Minerals Government Consumer Durables Communications Consumer Non-Durables Utilities Electronic Technology Non-Energy Minerals Process Industries Health Technology Transportation Distribution Services Retail Trade Health Services Consumer Services Commercial Services Technology Services Finance Total

L3M 12/31/23 Deal Count

214 208

11 26

1 59 39 83 79 70 56 87 106 90 204 106 129 239 494 565 514 3,380

L3M 12/31/22 Deal Count

201 203

8 24

1 61 47 91 89 82 73 109 134 120 243 148 178 325 587 729 797 4,250

SECTOR BY VALUE

Target Sector

Energy Minerals Consumer Services Non-Energy Minerals Transportation Industrial Services Process Industries Consumer Non-Durables Commercial Services Miscellaneous Consumer Durables Government Technology Services Distribution Services Communications Electronic Technology Health Services Producer Manufacturing Health Technology Utilities Finance Retail Trade Total

L3M 12/31/23 Value

$142,488.5 28,743.8 16,345.6 16,550.6 14,813.6 9,621.9 9,275.6 15,144.0 2,033.8 5,054.7 0.0 42,001.3 2,527.4 1,166.0 9,098.6 6,426.5 19,616.8 58,901.9 15,668.8 56,823.2 6,236.9

$478,539.6

L3M 12/31/22 Value $4,498.5 10,706.6 2,831.9 4,635.5 8,179.9 3,658.6 7,084.0 13,753.4 748.8 4,093.8 0.0 43,996.5 4,898.4 3,785.4 14,346.4 12,266.6 26,464.6 66,437.3 30,902.7 75,788.1 42,879.9

$381,956.9

Difference 13 5 3 2 0 (2) (8) (8)

(10) (12) (17) (22) (28) (30) (39) (42) (49) (86) (93) (164) (283) (870)

Difference $137,990.0

18,037.2 13,513.7 11,915.1

6,633.7 5,963.3 2,191.5 1,390.7 1,285.1

960.9 0.0

(1,995.2) (2,371.0) (2,619.4) (5,247.8) (5,840.1) (6,847.8) (7,535.3) (15,233.9) (18,964.9) (36,643.0) $96,582.7

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January 2024

US Strategic Buyer Report

Merger Stats

Number of Deals

12 Months Ended

12/31/23

12/31/22

$1 Billion + $500M to $999.9M $250M to $499.9M $100M to $249.9M $50M to $99.9M $25M to $49.9M $10M to $24.9M Under $10M Undisclosed Total

144 101 134 255 227 265 328 938 9,658 12,050

151 137 233 430 355 423 582 1,212 11,916 15,439

PUBLIC BUYER INDEX LTM 12/31/23

Change -4.6%

-26.3% -42.5% -40.7% -36.1% -37.4% -43.6% -22.6% -18.9% -22.0%

$200

$150

$100 $50 $0

39.4 241 Jan-23

47.6 205 Feb-23

74.8

264 Mar-23

65.2

209 Apr-23

67.8

61.9

263

204

May-23

Jun-23

Deal Volume

Agg Transaction Value ($Bil)

12 Months Ended

12/31/23

12/31/22 Change

$769.3 71.4 45.7 38.3 16.0 9.4 5.4 2.5 N/A

$957.9

$690.7 92.4 80.6 67.6 24.9 14.9 9.5 3.8 N/A

$984.4

11.4% -22.7% -43.3% -43.4% -35.8% -37.1% -42.8% -33.6%

N/A -2.7%

Average P/E

22.5 37.7 7.8 20.0 11.8 20.6 25.3 N/A N/A 20.2

178.8

300

78.0 51.3

33.4

204

220

203

Jul-23

Aug-23

Sep-23

Aggregate Deal Value

226 Oct-23

46.0 183 Nov-23

150 59.0

153 0

Dec-23

US Private Equity Report

Indices

PE BUYER INDEX: LTM 12/31/23

$60

150

48.2

$50

41.3

38.8

$40 $30 $20 12.3

32.1 21.5

17.7

28.0

26.5

23.1 23.2

75

13.7

$10 136 133 136 120 108 130 115 112 118 135 106 113

$0

0

Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23

GOING PRIVATE INDEX: LTM 12/31/23

$80

12

$70

$60

9

$50

37.2

$40

6

$30

16.5

$20 5.0 6.0

6.1

$10 6

5

10

6

7

8.3

9.1

8.5

7.3

5.6

10.7 3 3.3

6

8

12

7

9

11 10

$0

0

Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23

Top Private Equity Fundraisings: YTD 2023

Open Date

16-May-2023 1-Jan-2023

13-Feb-2023 1-Jan-2023

10-Jan-2023

1-Jan-2023 27-Oct-2023 1-Jan-2023 16-Jun-2023 7-Dec-2023

Value ($Mil)

$20,000.0 15,000.0

15,000.0 13,000.0

10,000.0

10,000.0 10,000.0 8,000.0 7,000.0 7,000.0

Fund(Sponsor)

Brookfield Global Transition Fund II Brookfield Technology Partners

Brookfield Strategic Real Estate Partners V Fund

Brookfield Asset Management (Real Estate) Clearlake Capital Partners VIII Fund

Clearlake Capital Group LP Dyal Capital Partners VI Fund

Blue Owl GPSC Advisors LLC (Private Equity) Ares Senior Direct Lending Fund III Ares Management Corp (Private Equity) Oaktree Lending Partners Corp. OCM Distressed Debt Group Starwood Distressed Opportunity Fund XIII Starwood Capital Group Global LLC KPS Special Situations Fund VI KPS Capital Partners LP Global Renewable Power Infrastructure Fund IV Global Energy & Power Infrastructure KKR Global Climate Fund Kohlberg Kravis Roberts & Co. LP

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January 2024

Top US Advisors

BASED ON US ANNOUNCED DEALS ? RANKED BY TRANSACTION VALUE: YTD 2023

Financial Advisor

Transaction Value ($Mil)*

Total Deals**

Legal Advisor

Transaction Value ($Mil)*

1.

Goldman Sachs & Co.

$567,768.2

180 1.

Wachtell, Lipton, Rosen & Katz

$281,702.2

2.

JPMorgan Chase & Co

484,116.6

184 2.

Kirkland & Ellis LLP

266,282.6

3.

Morgan Stanley

444,799.2

124 3.

Sullivan & Cromwell LLP

266,175.5

4.

BofA Securities

294,161.6

119 4.

Latham & Watkins LLP

259,789.2

5. Citigroup

294,057.2

87 5.

Skadden, Arps, Slate, Meagher & Flom LLP

212,141.2

6.

Centerview Partners Advisory Holdings

226,077.3

59 6.

Paul, Weiss, Rifkind, Wharton & Garrison

203,654.4

7.

Evercore, Inc.

197,957.2

90 7.

Davis Polk & Wardwell LLP

201,190.4

8.

RBC Capital Markets

126,962.3

82 8.

Fried, Frank, Harris, Shriver & Jacobson

179,381.3

9.

Wells Fargo & Co.

108,449.5

37 9.

Cravath, Swaine & Moore LLP

178,225.3

10. Barclays PLC

99,898.6

59 10. Simpson Thacher & Bartlett LLP

157,610.9

11. Lazard

98,789.4

82 11. Gibson, Dunn & Crutcher LLP

129,320.9

12. UBS Group AG

95,773.4

77 12. Cleary Gottlieb Steen & Hamilton LLP

112,257.1

13. Guggenheim Securities LLC

93,887.3

44 13. Shearman & Sterling LLP

110,319.2

14. Jefferies LLC

79,662.0

129 14. Alston & Bird LLP

103,616.0

15. Moelis & Co.

76,321.7

68 15. Clifford Chance LLP

100,985.6

16. Bank of Montreal

69,468.5

50 16. Freshfields Bruckhaus Deringer LLP

88,522.6

17. Petrie Partners LLC

64,922.6

1 17. Weil, Gotshal & Manges LLP

85,119.1

18. PJT Partners, Inc.

56,805.3

29 18. Goodwin Procter LLP

84,932.4

19. Qatalyst Group LP

50,918.0

8 19. White & Case LLP

64,660.2

20. Consello Management LP

48,658.6

2 20. Vinson & Elkins LLP

61,688.5

21. Piper Sandler Cos.

47,392.7

85 21. Hogan Lovells

43,848.7

22. MTS Health Partners LP

47,055.8

9 22. Wilson Sonsini Goodrich & Rosati

42,067.5

23. Deutsche Bank AG

45,662.9

36 23. Cooley LLP

38,303.4

24. Perella Weinberg Partners

45,428.4

29 24. Ropes & Gray LLP

38,248.4

25. The Toronto-Dominion Bank

42,644.2

57 25. Sidley Austin LLP

38,202.4

26. Rothschild & Co

32,704.6

78 26. Paul Hastings LLP

37,370.3

27. Ernst & Young Global Ltd.

31,938.4

66 27. Willkie Farr & Gallagher LLP

37,135.3

28. Mizuho Financial Group, Inc.

30,893.4

21 28. Jones Day LP

32,062.8

29. HSBC Holdings Plc

30,250.2

8 29. Debevoise & Plimpton LLP

30,278.4

30. Mediobanca Banca di Credito Finanziario

29,756.4

17 30. King & Wood Mallesons Ltd.

30,211.5

31. LionTree LLC

29,695.7

13 31. Herbert Smith Freehills Australia LLP

28,382.5

32. William Blair & Co.

28,817.5

82 32. AZB & Partners

28,107.7

33. Truist Financial Corp.

28,299.5

23 33. Allen & Overy LLP

27,686.7

34. Tidal Partners LLC

28,083.0

2 34. Milbank LLP

27,292.5

35. Vitale & Co. Holding SpA

26,274.8

3 35. Richards, Layton & Finger PA

26,208.8

36. Raymond James Financial, Inc.

25,762.9

86 36. Linklaters LLP

24,288.9

37. Gresham Partners Ltd.

22,226.6

6 37. Morrison & Foerster LLP

23,648.1

38. Grant Samuel & Associates Pty Ltd.

18,897.6

1 38. Homburger AG

23,343.5

39. Houlihan Lokey, Inc.

14,055.3

163 39. Matheson Ormsby Prentice

23,171.3

40. Mitsubishi UFJ Financial Group, Inc.

12,895.1

3 40. McGuireWoods LLP

21,386.8

41. BNP Paribas SA 42. Scotiabank 43. The Raine Group LLC 44. Stifel/KBW 45. Robert W. Baird & Co. 46. Intrepid Partners LLC 47. Ardea Partners LP 48. Eastdil Secured LLC 49. Macquarie Group 50. Nomura Securities Co., Ltd.

12,854.2 12,260.5 11,143.3 10,360.4

9,693.7 9,577.2 8,504.0 8,348.8 8,007.0 7,815.8

24 41. Morgan, Lewis & Bockius LLP

17

42.

Hengeler Mueller Partnerschaft von Rechtsanw?lten mbB

7 43. Blake, Cassels & Graydon LLP

74 44. Covington & Burling LLP

62 45. Baker & McKenzie LLP (Illinois)

2 46. Dechert LLP

11 47. McDermott Will & Emery LLP

5 48. Pillsbury Winthrop Shaw Pittman LLP

29 49. Stikeman Elliott LLP

20 50. McCarthy T?trault LLP (Canada)

21,173.1 20,654.0 20,079.5 19,401.5 18,359.7 18,201.5 16,950.4 16,843.8 16,712.6 15,994.5

* * Transaction Value is the aggregate base equity plus the target's net debt, where applicable.

**** Total Deals includes deals that reported a deal value as well as those that did not.

If you would like to participate in our league table rankings or have questions about league table criteria, please contact advisors@.

Total Deals**

57 410

93 274 132

80 90 41 55 115 148 67 56 75 43 44 92 237 66 48 54 79 131 89 76 77 90 124 33 11 18 34 33 30

6 25 71

7 7 16 105

9

44 21 35 35 62 56 45 19

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January 2024

Top US Deals Scoreboard

Rank

1 2 3

4

Seller (Unit Sold) Financial Advisor Legal Advisor

Pioneer Natural Resources Co. BofA Securities, Inc. Goldman Sachs & Co. Morgan Stanley Petrie Partners LLC Gibson, Dunn & Crutcher LLP

Hess Corp. Goldman Sachs & Co. JPMorgan Chase & Co Fried, Frank, Harris, Shriver & Jacobson LLP Wachtell, Lipton, Rosen & Katz

Seagen Inc. Centerview Partners LLC MTS Health Partners LP Skadden, Arps, Slate, Meagher & Flom LLP Sullivan & Cromwell LLP

Splunk, Inc. Morgan Stanley Qatalyst Group LP Cooley LLP Skadden, Arps, Slate, Meagher & Flom LLP

WestRock Co.

Consello Management LP

Evercore, Inc.

Goldman Sachs & Co.

5

Lazard

Clifford Chance LLP

Cravath, Swaine & Moore LLP

Fried, Frank, Harris, Shriver & Jacobson LLP

Paul, Weiss, Rifkind, Wharton & Garrison LLP

Newcrest Mining Ltd.

Grant Samuel & Associates Pty Ltd.

Gresham Partners Ltd.

6

JPMorgan Chase & Co. Cravath, Swaine & Moore LLP

Herbert Smith Freehills Australia LLP

Magellan Midstream Partners LP

Morgan Stanley

7

Davis Polk & Wardwell LLP Latham & Watkins LLP

Richards, Layton & Finger PA

Viterra Ltd. (Jersey)

8

JPMorgan Chase & Co. Freshfields Bruckhaus Deringer US LLP

Weil, Gotshal & Manges LLP

Life Storage, Inc.

BofA Securities

Wells Fargo & Co.

9

Cleary Gottlieb Steen & Hamilton LLP Cravath, Swaine & Moore LLP

Hogan Lovells US LLP

Phillips Lytle LLP

Quinn Emanuel Urquhart & Sullivan LLP

The Viessmann Group (Viessmann Climate Solutions SE)

Goldman Sachs & Co.

Davis Polk & Wardwell LLP

10

Hengeler Mueller Partnerschaft von Rechtsanw?lten mbB

**Total Market Value of Top 10 Deals YTD

Buyer Financial Advisor Legal Advisor

Exxon Mobil Corp. Centerview Partners LLC Citigroup Davis Polk & Wardwell LLP

Chevron Corp. Evercore, Inc. Morgan Stanley Alston & Bird LLP Paul, Weiss, Rifkind, Wharton & Garrison LLP Shearman & Sterling LLP

Pfizer Inc. Guggenheim Securities LLC Arnold & Porter Kaye Scholer LLP Goodwin Procter LLP Wachtell, Lipton, Rosen & Katz

Cisco Systems, Inc. Citigroup Consello Management LP Goldman Sachs & Co. JPMorgan Chase & Co RBC Capital Markets Tidal Partners LLC Clifford Chance LLP Cravath, Swaine & Moore LLP Latham & Watkins LLP Simpson Thacher & Bartlett LLP

Smurfit Kappa Group Plc Citigroup PJT Partners, Inc. Allen & Overy LLP Freshfields Bruckhaus Deringer LLP Matheson Ormsby Prentice Wachtell, Lipton, Rosen & Katz

Newmont Corp. Bank of Montreal BofA Securities Centerview Partners LLC Lazard King & Wood Mallesons Ltd. Weil, Gotshal & Manges LLP White & Case LLP

ONEOK, Inc. BofA Securities Goldman Sachs & Co. Perella Weinberg Partners Kirkland & Ellis LLP Paul, Weiss, Rifkind, Wharton & Garrison LLP

Bunge Ltd. BofA Securities Homburger AG Latham & Watkins LLP

Extra Space Storage, Inc. Citigroup JPMorgan Chase & Co Latham & Watkins LLP Morrison & Foerster LLP

Carrier Global Corp. Ernst & Young Global Ltd. JPMorgan Chase & Co Linklaters LLP Paul, Weiss, Rifkind, Wharton & Garrison LLP Sch?nherr Rechtsanw?lte GmbH Simpson Thacher & Bartlett LLP Talwar Thakore & Associates

Transaction Value** ($Mil)

$65,003.3

Seller Sector

Energy Minerals

$59,809.4

Energy Minerals

$41,523.1

Health Technology

$28,083.0

Technology Services

$20,575.6

Process Industries

$18,897.6

Non-Energy Minerals

$18,742.7

Industrial Services

$17,953.7

Distribution Services

$15,784.2

Finance

$13,707.6

Producer Manufacturing

$300,062.3

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