The volume and scale of business suggests “we may be looking at the beginning of the next merger wave”, according to Steve Allan, a senior executive at Towers Watson, the professional services group which monitors deals and trends.
The third quarter has experienced a dramatic boost to the pace and scale of activity, particularly in Far East markets, where the speed of growth has continued to gain momentum.
Since June the volume and the value of deals has reached a point where the third quarter will be the most hectic three-month period since 2008, according to data from Towers Watson and Cass Business School.
The return of the “mega deal” – takeovers with a price tage of $10bn (£5,.9bn) or more – has accelerated the growth of business in the third quarter and has prompted predictions of a new wave of mergers.
A flurry of $100m deals has underpinned the flow of business in the market. So far this year Towers Watson and Cass Business School have examined 564 deals, each worth more than $100m (£58m).
The takeover surge has been accompanied by a spate of flotations. London alone has firms with an estimated value of £3bn seeking listings and funding for expansion.
The Asia Pacific region continues to be the most active in terms of takeover activity, with financial returns comfortably above market ratings, according to Towers Watson indices.
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