M David Harding, an advisory partner with Bain based in the Boston of ce; Peter Horsley, a Bain partner in the London of ce; and a team led by Shikha Dhar, a practice manager with Bains Mergers Hugh MacArthur, Dan Haas, Mike McKay and Brenda Rainey for their perspectives on the M Nicolas Bloch for his perspectives on M Martin Holzapfel and Richard Lichtenstein for their perspectives on due diligence; Allison Snider, Matthew Meacham, Jean-Charles van den Branden and Charlotte Apps for their perspectives on M Eric Garton, Sarah Elk, Marc Berman and Ludovica Mottura for their perspectives on operating model and culture; Adam Borchert and Joost Spits for their perspectives on M Jim Wininger for his reviews and perspectives on divestitures; Sachin Shah, Laurent Hermoye and Rajesh Narayan for their perspectives on business process and systems integration; Andrew Schwedel, Julien Faye and Tom De Waele for their perspectives on M Tina Strasse and a team led by Vinayak Jain at the Bain Capability Network for their analytic support; Mateusz Kaminski, Emily Lane and John Peverley for their research assistance; and David Diamond for his editorial support.1 M geography based on targets location; strategic deal value includes acquisitions made by public or private companies, including any acquisitions from financial sponsors; only rank eligible deals included, excluding buyback programs and equity carve-outs Source: Dealogic 0 10,000 20,000 30,000 40,000 50,000 1998 2.2 3.1 3.2 1.6 1.2 1.2 1.7 2.5 3.0 3.7 2.1 2.4 2.4 2.3 2.4 3.0 3.8 3.2 2.9 2018 $3.4T Global strategic M rebound from 20177 M growth rates based on local currency growth for each fiscal year; trailing-12-month growth rates shown for 2018 as of September 2018 Sources: Capital IQ; Bain analysis Growth rates recovered from 2016, still muted vs. historical levels Trend line 5 0 5 10% 1997 2000 2005 2010 2015 2018 9.7% 10.1% 2.4%8 M data shown here is for 12 months ending September of each year Sources: Capital IQ; Bain analysis Discretionary cash spent on R&D and capital expenditure percentage of total discretionary cash 48 44 2013 2018 US S&P 500 61 42 UK FTSE 100 71 47 France CAC 40 64 53 Germany DAX 30 81 Japan Nikkei 225