Number of deals
Do investors think the average deal creates value?
Average annual deal value added (DVA), %
How disciplined are acquirers in their efforts to pay the right price?
1-week premium,3 %
1
DVA defined as combined (acquirer and target) change in market capitalization, adjusted for market movements, from 2 days prior to 2 days after announcement, as a percentage of transaction value.
2
POP defined as the proportion of transactions in which share price reactions, adjusted for market movements, were negative for the acquirer from 2 days prior to 2 days after the announcement.
3
For M&A deals involving publicly traded companies: 1-week premium = price offered per share vs target company’s share price 1 week prior to announcement.
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Years with 3 or fewer deals are not plotted.