While it is undoubtedly disappointing to observe that both the volume and value of deals with North American targets declined in November, it is also worth noting that November was also a relatively quiet month last year, before an increase in volume and value occurred in December.
NEW YORK (PRWEB) December 11, 2017
Both the volume and value of mergers and acquisitions (M&A) targeting North American companies declined in November, according to information collected by the leading M&A database Zephyr. In all, there were 1,726 deals worth USD 71,527 million announced during the month. In terms of volume this represents a 13 per cent decline on the 1,990 deals announced in October 2017, while value slipped 30 per cent from USD 102,735 million over the same timeframe.
Zephyr shows the decline in value comes despite the fact that a number of sizeable transactions were announced in the region during November. In all, 13 deals broke the USD 1,000 million-barrier during the month under review. The largest of these featured a US target as Marvell Technology Group agreed to pick up network semiconductor technology manufacturer Cavium for USD 6,700 million. This deal accounted for 9 per cent of total value in the region during the month and was followed by a USD 4,000 million acquisition of CBS Radio by Entercom Communications. Four other deals broke the USD 2,000 million-barrier and all featured US targets, specifically Buffalo Wild Wings, Time, Almost Family and Snap. The most valuable deal with a Canadian target placed 12th overall and involved Calgary-headquartered crude oil transportation firm Enbridge carrying out a private placing worth USD 1,171 million.
Lisa Wright, Zephyr director, commented, “While it is undoubtedly disappointing to observe that both the volume and value of deals with North American targets declined in November, it is also worth noting that November was also a relatively quiet month last year, before an increase in volume and value occurred in December. This gives some hope that a revival could once again be on the cards in the run-up to the end of the year. In any case, the disappointing results certainly do not reflect a lack of big deals taking place as plenty of sizeable transactions were announced during November.”
Zephyr shows that, in keeping with the overall pattern for M&A, both the volume and value of private equity and venture capital (PE and VC) investment declined in November, although the drop was not as pronounced as with M&A. In all there were 1,080 deals worth a combined USD 20,762 million announced during November, compared to the USD 21,541 million invested across 1,257 deals in October. It was a similar story in a year-on-year comparison as volume and value were down 1 per cent and 8 per cent from 1,096 and USD 22,561 million, respectively, in November 2016. Despite the disappointing showing value was still up on a number of months in the last year, namely September 2017 (USD 14,152 million), February 2017 (USD 19,651 million), January (USD 16,734 million) and December 2016 (USD 16,454 million).