That said, deal values were still robust and the involvement of Warren Buffett in the month’s top deal is a positive sign for the current M&A landscape.
New York, NY (PRWEB) August 28, 2015
Growth in mergers and acquisitions (M&A) activity targeting North American companies stalled in August, a trend generally seen at this time of year as the vacation period takes hold.
There were 946 transactions worth a combined USD 175,684 million over the four weeks, compared to 1,290 deals worth USD 274,344 million in July, representing a 36 percent decrease in monetary terms. While value was also down on the same time a year ago, it fell at the slower rate of 5 percent (August 2014: 184,385 million).
A similar picture emerged in M&A targeting specifically US-based companies. Value declined by 35 percent month-on-month to USD 173,522 million from USD 267,100 million, against a 24 percent fall in volume. However, M&A value was higher in the four weeks under review than at the same time in 2014, when deals worth a combined USD 166,991 million were announced. M&A value targeting Canadian companies fell almost four-fold month-on-month from USD 8,069 million to USD 2,163 million, while volume weakened by more than a third. In a year-on-year comparison, value was 88 percent lower than the USD 17,394 million recorded in August 2014, against a 41 percent decrease in volume.
Lisa Wright, Zephyr director, said: “August is traditionally a quieter month, so weaker M&A results from North America are not a great surprise. That said, deal values were still robust and the involvement of Warren Buffett in the month’s top deal is a positive sign for the current M&A landscape. Significant growth in private equity investment is also very encouraging.”
In contrast to overall M&A, the value of private equity and venture capital (PE and VC) investment targeting the region increased both month-on-month and year-over-year. Deals worth a collective USD 26,299 million were announced during the four weeks, up by almost three-quarters on USD 15,187 million in July and double the USD 13,073 million-worth of investment in August 2014. However, volume was the lowest recorded in the last 12 months under review.
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