Is the M&A boom over? - The McKinsey Quarterly - 2007 M&A - Corporate Finance

A wrap-up of 2007 M&A activity finds that the volume of mergers and acquisitions reached new heights during the year but then fell precipitously after the subprime-lending crisis made credit tighter. Nonetheless, suggestions that the M&A boom has met its demise may be premature.
Most of the decline in M&A since August was concentrated in private-equity deals; corporate acquisitions continued apace. In a market characterized by tighter credit and a heightened appreciation of risk, this M&A boom will continue only if the more fundamental forces behind it, such as the surging activity of acquirers in emerging markets and increasing cross-border activity, continue as well.
Furthermore, deal makers largely continued to exert greater discipline in M&A, as evidenced by metrics for the value that deals created and by the smaller number of acquirers overpaying for acquisitions.

Exhibit 1: The slow-down in M&A over the last few months of 2007 was concentrated largely in the private-equity sector.
Exhibit 2: M&A deals continued to generate strong value in 2007.
Exhibit 3: The acquirers’ share of the overall value created by deals has improved somewhat.
Exhibit 4: The levels of value created by deals in different sectors and geographies continue to diverge significantly.