Latest data from Experian reveals a drop in M&A activity but an increase in deal value

news release

  Latest data from Experian reveals a drop in M&A activity but an increase in deal value

Nottingham, 05 October 2010 — Experian®, the global information services company, today released its latest mergers and acquisitions (M&A) and equity capital market (ECM - flotation, rights issue and placements) data revealing that the number of deals had fallen during Q3 2010 for the UK and Europe, compared to Q3 2009. 

UK

The total number of UK M&A and ECM transactions during Q3 2010 fell by 22.7% compared to the same period last year - from 1,110 deals in Q3 2009 to 859 deals in Q3 2010.

However, the total value of Q3 2010 deals increased by 45.3% on Q3 2009 - from £41.07billion to £59.67billion.

Compared to the previous quarter (Q2 2010), the UK saw a 23% decrease in volume, but a 4.8% increase in value - from 1,115 deals worth £56.96billion to 859 deals worth £59.67billion.

The European Picture

Europe saw a 25.1% decrease in the number of European M&A and ECM transactions announced    during Q3 2010 with only 2,140 deals compared to 2,858 transactions in Q3 2009.

Value however increased by 4.16% from £149.664bn in Q3 2009 to £155.883billion in Q3 2010.

The change from Q2 2010 revealed a 25% fall from 2,853 transactions and a 3.4% fall from the £161.358billion recorded.

Wendy Smith, Business Development Manager at Experian Corpfin, said: “Although the UK returned to growth in the final quarter of 2009, the level of deal making in the UK since then has yet to reflect this.  Deals tend to slow down during Q3 of any year, so quarter on quarter figures show a seasonal decline.  However, the year on year view reveals that while some regions held up a little better than others, there was still decline in the volume of M&A and ECM activity overall.  However, the UK still fared a little better than Europe, where there was a slightly larger decline in the volume and the value of deals also fell.” 

UK deal sizes

Large deals (£100million*)

A total of 69 deals with a consideration over £100million* were recorded in Q3 2010, a 11.5% decrease compared to the 78 large transactions announced in Q3 2009.

The deal values of large transactions have increased to £53.644billion, up by 55.5% in comparison to £34.499billion recorded in Q3 2009.

There were 13 transactions with a consideration of over £1billion recorded in Q3 2010, resulting in a total value of £37.579billion.

In comparison to the previous quarter (Q2 2010) there was a 10.4% decrease from the 77 large deals announced and a 6.1% increase from £50.571billion announced.

Mid-market deals (£10-£100million*)

A total of 144 transactions worth £5.21billion were recorded in the mid-market deal during Q3 2010.

This was down compared to Q3 2009, when 160 transactions worth £5.684billion were recorded.

Compared to the previous quarter the number of transactions were down 14.3% and the value was down 4.6% - on the 168 deals valued at £5.461billion.

Small deals (under £10million*)

Small deals accounted for 242 announced transactions and a deal value of £811.6million in Q3 2010.

This was down compared to the 296 small deals accounting for £886.8million that were announced in Q3 2009.

In the previous quarter (Q2 2010), small deals accounted for 290 deals worth £923.9million.

Table 1: Comparison of regional deal activities Q3 2010

  Table 2: Financial advisor deal activities Q3 2010

  Table 3: Legal advisor deal activities Q3 2010

  For a more detailed report, please visit: http://www.corpfinworldwide.com/web/MaAndIpo.jsp

  ENDS