M&A – Quarterly Deal Performance Monitor: Q4 2017

Worst M&A performance for a decade – is the bubble about to burst?

December 27, 2017

The global M&A market has for the first time in ten years reversed a long-term trend of outperforming the Index* by failing to add value through deals made during 2017, according to Willis Towers Watson’s latest Quarterly Deal Performance Monitor (QDPM). On an YTD basis, acquirers have underperformed the index by 0.9pp (percentage points) in the last 12 months.

The M&A research, run in partnership with Cass Business School, tracks the number of completed deals over $100m and the performance of share price of the acquiring company against market indices. The findings also revealed that the final quarter of 2017 has proved especially challenging to deliver value, with dealmakers significantly underperforming the market by 5.6pp below the index. This is the lowest quarterly figure recorded since the QDPM research began in 2008.

M&A Quarterly Analysis of market performance, global sample

Bar graph: M&A Quarterly Analysis of market performance, global sample
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* MSCI World Index is used as default, unless stated otherwise.