Volumes were particularly high in the energy and power sector, which accounted for around 20 percent of the value of the deals, and in the financial sector.
The following are quotes from top dealmakers on topics including the deal flow in the third quarter, emerging markets and the economy in general.
JEFF KAPLAN, GLOBAL HEAD OF M&A, BANK OF AMERICA MERRILL LYNCH
'Some of the best deals are done at the beginning of an economic recovery and that's why deals tend to be fewer and potentially higher risk. The better valuations exist at the beginning of a recovery rather than at the height of a bull market. For instance, in '07 there were too many deals done at relatively high valuations.'
CARY KOCHMAN, HEAD OF MERGERS FOR THE AMERICAS, UBS AG
'What we're seeing now is a lot of strategic activity -- 90 percent of activity is strategically motivated -- as companies boast record cash balances and have access to financing at more attractive rates.'
'It is manifesting itself in an increase in hostile activity and topping bids in several sectors. The slow return of private equity really demonstrates the premise that there's more buyer interest in this point of time than there are assets available on the market. When buyers are going hostile and jumping other bids, and there's very little private equity momentum, it's clear that there are fewer sellers than buyers.'
SCOTT MATLOCK, CHAIRMAN OF INTERNATIONAL M&A, MORGAN STANLEY
'We're seeing a secular trend of emerging market countries starting to produce champions that are reaching overseas. Indian companies, for example, are able to do deals that would have eluded them a few years ago.'
PETER WEINBERG, PARTNER, PERELLA WEINBERG
'Pre-crisis, boutiques did business based on the quality of their relationships and the quality of their expertise. Post-crisis, it's that, plus their independence. The independence feature of the boutiques is a very important and profound change in the M&A business. CEOs and boards now not only want, but require, an independent advisor, either solely to be giving advice, or in partnership with a large firm.'
'Every financial institution, from the very large to the very small, is committed to the client businesses today. We are all out there slugging it out using our respective competencies. Boutiques use their expertise and their independence; large firms use their product breadth and their balance sheets. Like any industry, there is room for those who provide the most valuable service to the customer.'
GARY POSTERNACK, HEAD OF M&A FOR THE AMERICAS, BARCLAYS CAPITAL
'More relevant than the size of sponsor activity is the fact that sponsors have returned to the market in earnest. That's an important factor as we talk to our corporate clients about potential divestiture opportunities. Having a viable sponsor bid in the market is a key factor in companies' decisions around timing. For a while last year, with the view that sponsors were not able to play in a meaningful way on the buy-side, companies were holding back on potential divestitures of non-core assets.'
JIMMY ELLIOTT, GLOBAL HEAD OF M&A, JP MORGAN CHASE AND CO
'Many CEOs and boards are not willing to do transforming transactions at this point, but we do have a nice, healthy resurgence of smaller, bolt-on acquisitions. That is an absolute fundamental building block that's required to get M&A back on track.'
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