February 2014 saw a significant decline in the number of M&A deals from January, although overall M&A volume by dollar value rose for the second consecutive month. Sponsor-related transactions were hit particularly hard with both volume and number of deals declining in the U.S. and abroad. Figure 1. Telecommunications again led all U.S. target industries in deal volume, but the Healthcare industry also saw very significant growth, ranking second at nearly $40 billion, the highest value seen since we began the publication in April 2012. Figure 2. Following a strong January for U.S. crossborder transactions, inbound and outbound crossborder deal volume fell substantially, in each case due to considerable declines in both number of deals and average deal value. Several of the top five countries for inbound and outbound transactions by volume and number of deals fell shy of their 12-month averages. Figures 1 and 3. The average value of U.S. public mergers increased substantially from January and posted its highest figure since the onset of this publication. Figure 4. Average break fees as a percentage of equity values for U.S. public mergers was relatively flat compared to the 12-month average, but average reverse break fees increased from 4.5% in January to 7.5% in February. Figure 7. The percentage of U.S. public mergers using tender offers was lower than its 12-month average and declined considerably from January. Figure 11.
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