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Record number of deals highlights the first half of 2015

On Behalf of | Jul 8, 2015 | Mergers & Acquisitions

The Fourth of July holiday weekend got off to a good start with a positive jobs report for June. While the U.S. Department of Labor reported that the economy added more than 200,000 jobs last month, the number of employees getting raises or increasing their income remained flat. The numbers were largely based on fewer people being in the workforce, even though more people were employed.

Along with the brisk pace of hiring, the first six months of the year were exceptional for mergers and acquisitions. According to a recent USA article, more than $1 trillion…yes, $1 trillion in mergers and acquisitions of U.S. companies were announced between the beginning of January and the end of June. 

It almost appears as if hope sprang eternal as winter gave way to spring. Between April and June, there 21 deals that were worth more than $10 billion each. Also, the month of May saw $251 billion in deals and June saw $247 billion in mergers and acquisitions.

The record pace was the first time that any country topped $1 trillion in deals, and the number broke the previous record of $964 billion which was set in the first six months of 2007; which ominously was the “sprint” before the last depression.

It remains to be seen whether this pace will be kept for the rest of the year, or even into next year. Nevertheless, the bounty of deals to be made suggests that companies who seek to acquire other businesses should have experienced legal counsel to shepherd them through the process.