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June 14, 2017

Written by Keith Drakos

US share of global M&A revenue the highest since 1998

US M&A revenue reached a new YTD record with $6.0bn so far in 2017, up 6% from the same period last year and exceeding the previous record of $5.7bn held in 2015. The US accounted for 57.7% of global M&A revenue in 2017 YTD, up from 2016 YTD (53.2%) and the highest in almost two decades. The last year with such a high YTD share was 1998 (61.1%), which came on the heels of the highest years on record (1996 with 67.1% and 1997 with 64.1%).

Sponsor revenue the highest on record

Financial sponsors pushed up US M&A revenue, reaching the highest YTD on record with $1.4bn in 2017—up 41% from last year and surpassing the previous YTD record set in 2014 with $1.2bn. Exits accounted for the majority with 59.5% of all sponsor revenue in 2017 YTD and totaled $859m, also the highest YTD revenue on record. Sponsor revenue from portfolio deals experienced a record YTD high as well with $236m so far this year, which is more than double compared to 2016 YTD ($96m). Conversely, sponsor entry revenue has been on a largely downward trend since 2014 YTD ($377m), though revenue of $300m so far this year is on par with 2016 YTD.

Technology again the top sector

Technology led the sector ranking for the second consecutive year for US M&A revenue, totaling $1.14bn so far this year—the third highest YTD on record, only slightly behind $1.16bn from 2000 YTD and the record held in 2016 YTD ($1.17bn). Energy & natural resources came in second with $837m in 2017 YTD, up 45% from the same period last year and the second highest YTD on record behind 2012 ($860m). The top two revenue-generating deals that completed in 2017 YTD are in these sectors, and together accounted for 23.6% of revenue from the top 10 deals.

 

Data source: Dealogic, as of June 14, 2017

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