Biglaw

2018 Looks Like A Crazy Year For M&A

It's already been a helluva 2018 in M&A.

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Get ready to bill your butts off M&A attorneys.

As reported by Bloomberg, the value of mergers for 2018 — yes, we are still in January — reached a peak of $152.5 billion. That’s as high as that mark has been since the tech bubble of 2000:

Just three weeks into the year, the value of mergers announced totals $152.5 billion. That’s the highest since the $374 billion racked up in the same period during the technology deal frenzy in 2000, according to data compiled by Bloomberg. While clouds loom, bankers say the U.S. corporate tax cut, robust economies and rising stock markets are giving executives confidence to sign off on billion-dollar transactions — and in some cases, to pay rich prices.

While Biglaw partners might be taking a hit from the new tax law, their M&A departments are certainly making up for it. But that’s only one part of the magic formula that’s led to such a strong showing:

Private equity firms are also set to ramp up deal making, said Jeff Cohen, global head of leveraged finance capital markets at Credit Suisse Group AG.

“I would expect to see some very large transactions this year simply because all the stars have aligned,” Cohen said. “Private equity firms are flush with new capital commitments, they’ve seen some very large amounts of funds raised in the past 12 months and credit markets are as bold and resilient as we’ve seen in a long time,” he said.

Notable deals announced for 2018 include:

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  • Dominion Energy Inc.’s acquisition of Scana Corp. Value: ~$14.5 billion
  • American International Group Inc.’s purchase of reinsurer Validus Holdings Ltd. Value: $5.56 billion
  • Celgene Corp.’s acquisition of Juno Therapeutics Inc. Value: $9 billion
  • Sanofi’s aquisition of drugmaker Bioverativ Inc. Value: ~$11.6 billion.

M&A attorneys should enjoy this Goldilocks moment while it lasts.

headshotKathryn Rubino is an editor at Above the Law. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

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