BIG FISH, SMALL FISH

2 Bid premiums have remained above the $billion 4.0001 Average premium (%) 60| 3 Private equity firms are ramping up their deal activities with the stress on debt financing Value of deals Number of deals 3.000 $ billion long-term average as acquirers seek to 4000 1,000 2000 30 3,000 800 consolidate Deal premium 1,000 600 2,000 400 1000 2000 2010 2000- 2010 200 10 2010 r32,000 O Number of deals - Value of deals 1 Though still below 2006-07 levels, the number of deals and their values in 2010 were back to 24,000 2004 levels, when the last wave started Number o -12,000 of deals A Fees paid to professional advisors in merger and acquisition deals rose sharply in 2010 Value of Deals 0.60 2000 2000 2010-0 2002 0.41 0.42 를 0.40 0.38 0.39 2003 2004 0.27 billion 2005 2006 2009 2010 2004 BIG FISH SMALL FISH After a negative showing in 2009, global GDP growth in 2010 rose again, returning close to the 2006 level 3.7 3.9 3.8 Global GDP growth (%) 2010 2004 2006 3.4 3.3 2007 2005 In yet another sign of financial recovery, a new global wave of mergers and acquisitions – of big fish consolidating by swallowing small fish - has begun, says a Boston Consulting Group study 1.6 2008 Long-term 3% average -2.3 2009 Graphic by Santosh Kushwaha 2 Bid premiums have remained above the $billion 4.0001 Average premium (%) 60| 3 Private equity firms are ramping up their deal activities with the stress on debt financing Value of deals Number of deals 3.000 $ billion long-term average as acquirers seek to 4000 1,000 2000 30 3,000 800 consolidate Deal premium 1,000 600 2,000 400 1000 2000 2010 2000- 2010 200 10 2010 r32,000 O Number of deals - Value of deals 1 Though still below 2006-07 levels, the number of deals and their values in 2010 were back to 24,000 2004 levels, when the last wave started Number o -12,000 of deals A Fees paid to professional advisors in merger and acquisition deals rose sharply in 2010 Value of Deals 0.60 2000 2000 2010-0 2002 0.41 0.42 를 0.40 0.38 0.39 2003 2004 0.27 billion 2005 2006 2009 2010 2004 BIG FISH SMALL FISH After a negative showing in 2009, global GDP growth in 2010 rose again, returning close to the 2006 level 3.7 3.9 3.8 Global GDP growth (%) 2010 2004 2006 3.4 3.3 2007 2005 In yet another sign of financial recovery, a new global wave of mergers and acquisitions – of big fish consolidating by swallowing small fish - has begun, says a Boston Consulting Group study 1.6 2008 Long-term 3% average -2.3 2009 Graphic by Santosh Kushwaha