While the M&A activity recorded for Q3 2017 is disappointing, there have been a few bright spots, namely the fact that global PE and VC value improved on Q3 2016’s result, while PE and VC value for both Western Europe and Asia-Pacific increased quarter-on-quarter and year-on-year.
New York, NY (PRWEB) October 05, 2017
The volume and value of global mergers and acquisitions (M&A) declined in the third quarter of 2017, according to information collected by the leading M&A database Zephyr. In all there were 19,916 deals worth a combined USD 980,156 million announced over the course of the three months. In terms of volume this represents an 84 percent decline on the 24,972 deals announced in Q2, while value fell 18 percent from USD 1,196,944 million over the same timeframe.
Zephyr shows the decline in value quarter-on-quarter and year-and-year comes despite a number of sizeable deals being announced during the period under review. The quarter’s largest deal was worth USD 30,000 million and involved United Technologies acquiring US aircraft cabin displays manufacturer Rockwell Collins. This deal alone accounted for 9 percent of total US dealmaking during Q3 and 3 percent of total global value for the period. All of the quarter’s top four deals featured US targets. Second place was taken by a USD 18,800 million purchase of a 60 percent stake in US power generation player Energy Future Holdings by Sempra Energy, while the USD 17,132 million buyout of Calpine by Energy Capital Partners, Access Industries and Canada Pension Plan Investment Board, among others, placed third.
Lisa Wright, Zephyr director, commented, “While the M&A activity recorded for Q3 2017 is disappointing, there have been a few bright spots, namely the fact that global PE and VC value improved on Q3 2016’s result, while PE and VC value for both Western Europe and Asia-Pacific increased quarter-on-quarter and year-on-year. Deals involving companies located in the CEE region also performed fairly well as M&A value was up on Q3 2016 and Q2 2017. Undoubtedly this quarter’s results are lower than Q2, but there are encouraging signs to suggest acquirors are prepared to pay high prices for the right targets in the run up to the end of the year.”
The Zephyr database shows that, in keeping with the overall pattern detected for M&A, both the volume and value of private equity and venture capital (PE and VC) deals declined during the third quarter of 2017. In all there were 4,934 deals worth a combined USD 163,330 million, compared to the USD 198,410 million invested across 5,807 deals in Q2 2017. While a decline in volume was also posted year-on-year, value actually increased over the 12 months; in Q3 2016 there were 5,937 announced deals worth USD 159,636 million.