Merger and acquisition activity is picking up as the year comes to close, but it’s still down notably from 2008, according to data from Mergermarket.

The firm reports that US$ 575 billion worth of deals have been announced so far in the fourth quarter, setting the stage for it to record the largest value in a quarter since the third quarter of 2008. Nevertheless, overall M&A activity for the year is 30% down from 2008.

The firm points out that while U.S. activity continues to dominate the global M&A scene, the Asia-Pacific region is the only market managing to generate activity that is close to its peak by value “offering a glimpse of where future growth potential lies.”

“The increase of M&A deals also includes a rise in activity in the moribund leveraged buyout industry,” it says. “Many of these transactions were small when compared with the strategic takeovers that made up the bulk of the 2009 deal-making activity, however there is much to suggest that larger and more frequent LBOs are in the offing. Debt to EBITDA multiples have increased significantly since the third quarter, providing private equity with the leverage required to execute deals.”

Morgan Stanley is just ahead of Goldman Sachs so far in the global M&A league tables, it reports. RBC Capital Markets is the only Canadian firm making it into the top 20, at number 19, in the rankings.

IE