There has been a substantial increase in M&A activity from Q1 to Q2 of this year. There were 3,482 deals announced this past quarter, which translates into a 33% increase from the 2,613 deals announced in Q1. Additionally, the total transaction value has increased nearly 54% from US$243,961MM in Q1 to US$374,962MM in Q2. This surge has also resulted in strong growth in the average value per deal, up over 15% from US$93.36MM per transaction to US$107.68MM per transaction.

In terms of the number of M&A transactions, every sector saw an increase from Q1 to Q2. The most significant growth was seen in the healthcare and consumer staples sectors, with 68.1% and 42.3% increases respectively. With regard to the change in the total transaction value, all but one sector saw a surge (materials).

The following graphs further highlight the changes between the two quarters in each sector.

All signs indicate that M&A growth will continue in subsequent quarters. The largest companies still have significant cash reserves and financial buyers are eager to deploy their capital. Additionally, technology trends such as cloud computing and social media will force larger companies that cannot keep up with innovation to target smaller companies with cutting-edge technology.