Global M&A Roundup Shows ‘Perfect Storm for Acquisition Finance’
Strong economic growth coupled with low interest rates resulted in a perfect storm for acquisition finance, with plenty of cheap debt available to fund deals, MergerMarket reports in its Global M&A roundup for 2015 for legal advisors.
During 2015 the value of cash & equity transactions increased to US$ 699.8bn, up 43.5 percent, compared to 2014’s annual total (US$ 487.7bn), reflecting a balance between cheap loans and cash piles on balance sheets.
Law firm Skadden Arps Slate Meagher holds on to the number one spot for deal value for another year while Latham & Watkins jumps from fourth to second last year. Cravath, Swaine & Moore makes an enormous leap from thirteenth place in 2014 to third in 2015, the report says.
“Attractive tax laws have resulted in Ireland and the UK becoming the most targeted countries by US companies in 2015. Ireland (36 deals, US$ 190.7bn) received the bulk of investment from the Allergan/Pfizer deal, whilst the UK (244 deals, US$ 61.8bn) benefited from the US$ 18.2bn acquisition of Visa Europe by US-based Visa Inc.,” according to the report.
