news release
Nottingham, 05 April 2011 — Experian®, the global information services company, today revealed that the number of mergers and acquisitions during January, February and March this year fell by 18.73 per cent, compared to the same period in 2010.
Despite the fall in volume, Experian’s latest mergers and acquisitions (M&A) and equity capital market (ECM - flotation, rights issue and placements) data has also revealed that the value of deals during Q1 2011 increased – up 5.94 per cent compared to Q1 2010.
UK highlights
During Q1 2011, UK deal volume fell from 1,153 in Q1 2010 to 937 and deal value increased from £45.3 billion to £47.98 billion.
Compared to Q4 2010, the UK saw a 9.1 per cent decrease in the number of UK M&A and ECM transactions announced, (from 1,031 deals to 937 deals), and a 9.8 per cent fall in the value of transactions from £53.2 billion down to £47.98 billion in Q1 2011.
The most improved region in the UK was Wales with a percentage increase of 68.2 per cent in deals compared to Q4 2010 and 42.3 per cent compared to Q1 2010.
The worst performing region was Northern Ireland where deal activity dropped by 25 per cent compared to Q4 2010 and 62.5 per cent compared to Q1 2010.
Europe and the rest of the world
Europe saw a 15.5 per cent decrease in European M&A and ECM transactions announced during Q1 2011 with 2,192 deals compared to 2,594 transactions in Q4 2010 and a 5.81 per cent fall on the €209.404 billion recorded in Q4 2010 to €197.247 billion worth of transactions announced in Europe in Q1 2011.
Compared to Q1 2010, Europe saw the volume of deals fall by 27.68 per cent from 3,031 to 2,192 deals. The value of deals increased from €185.198 billion in Q1 2010 to €197.247 billion – up 6.51 per cent.
The majority of the UK’s deals during Q1 2011 were with the USA, followed by Australia
In the USA, volumes were down in Q1 2011 by 10 per cent while values were up by 12.84 per cent compared to the previous quarter (Q4 2010) .
Asia Pacific witnessed declines in both volume and value during Q1 2011 by 22.8 per cent and 34.78 per cent respectively.
Wendy Smith, Business Development Manager at Experian Corpfin, said: “ 2011 hasn’t yet brought the rise in deal activity many had hoped for as appetite for higher risk, high return proposals remain low. However, the UK still fared a slightly better than the rest of Europe.
“Within the UK, we have seen some regional pockets that out-performed the national trend. Wales, the North West of England and Yorkshire all saw an increase in the volume of deals quarter-on-quarter.
“This shows that those businesses that present good quality opportunities are still finding the funding to get deals off the ground. It is vital that businesses take the time to prepare and ensure all their documents are in order and accurately reflect their position, before presenting their investment plan in order to have the best chance of securing funds.”
Table 1: Comparison of regional deal activities Q1 2011
Region |
Volume of deals announced |
Value of deals announced (£m) | ||||
Q1 2011 |
Q4 2010 |
Q1 2010 |
Q1 2011 |
Q4 2010 |
Q1 2010 | |
Greater London |
274 |
334 |
381 |
13,838 |
32,027 |
20,389 |
South East |
101 |
119 |
148 |
2,738 |
8,949 |
15,026 |
South West |
109 |
141 |
157 |
11,969 |
6,880 |
2,688 |
East Anglia |
47 |
54 |
66 |
1,064 |
613 |
502 |
Midlands |
112 |
116 |
120 |
5,904 |
925 |
1,128 |
Yorkshire |
76 |
71 |
92 |
1,358 |
299 |
1,169 |
North West |
142 |
137 |
142 |
3,410 |
2,741 |
3,973 |
North East |
31 |
41 |
42 |
1,252 |
862 |
433 |
Wales |
37 |
22 |
26 |
1,202 |
41 |
45 |
Scotland |
59 |
74 |
118 |
4,221 |
2,678 |
1,912 |
Northern Ireland |
3 |
4 |
8 |
0 |
91 |
27 |
Table 2: Rest of World summary Q1 2011
Rest of World |
Volume of deals announced |
Value of deals announced (£m) | ||||
Q1 2011 |
Q4 2010 |
Q1 2010 |
Q1 2011 |
Q4 2010 |
Q1 2010 | |
Europe |
2,192 |
2,594 |
3,031 |
167,085 |
177,382 |
156,878 |
USA |
1,531 |
1,698 |
2,218 |
192,544 |
170,631 |
152,740 |
Asia |
2,225 |
2,882 |
2,921 |
133,058 |
204,001 |
152,251 |
Table 3: Top five countries dealing with the UK in Q1 2011
Country |
per cent of deals |
Deal value (£m) |
Deal Volume |
USA |
15.26% |
16,954 |
143 |
Australia |
2.88% |
310 |
27 |
Germany |
2.35% |
6,946 |
22 |
India |
2.13% |
1,030 |
20 |
Ireland |
2.13% |
382 |
20 |
For a more detailed report, please visit: http://www.corpfinworldwide.com/web/MaAndIpo.jsp
ENDS
Ms Serj Heera
PR Manager
0115 992 2773/07837 652169
Jane Turner
Research Supervisor
Credit Services Operations
0161 233 3103 | M 44 (0) 7527 462 089 | F: 44 (0) 161 236 2672 jane.turner@corpfinworldwide.com
Notes to editors
*Where consideration disclosed
Deal information is based on transactions announced between 1st January and 25th March 2011 for quarter one figures and 1st October and 31st December 2010 for quarter four figures. Target, bidder or parent of either party must be located in the region which is analysed in order to be included. The deal value of transactions covered in this report is £500,000 or above. Deal activity analysis referring to deal values is based on disclosed actual figures only.
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 90 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2010 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.