Professionals in the finance industry agree that mergers and acquisition activity is probably the key indicator that the economy is roaring back. Economically speaking, mergers and acquisitions are a “leading indicator” of the how the economy is progressing. Activity so far in 2018 is setting records, and the Energy and Power sector is leading the way. Below are a chart and data provided by Thomson Reuters “Mergers and Acquisitions Review” quarterly review, September 2018. Stay tuned for their 4th quarter report.
Americas M&A volume during the first nine months of 2018 was up 38% compared to the same period last year, accruing US$1.9 trillion in activity from 14,168 announced deals.
US Targeted M&A volume totaled US$1.3 trillion, a 50% increase in activity compared to the first nine months of 2017. The period saw 9,251 deals announced, a 11.8% decrease from a year ago.
The Energy & Power sector led the US market, with deal volume totaling US$300.1 billion, accounting for a 22.5% market share. Technology followed, accruing US$218.1 billion for a 16.4% share of the market. Healthcare rounded out the top 3 sectors, with US$186.1 billion and a 14% share.