news release
Nottingham, 17 August 2011 — Experian®, the global information services company, today revealed that the number of mergers and acquisitions during the first six months of 2011 (HY11) fell by 15% compared to the same period in 2010.
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 HY11 increased – up 7% compared to HY10.
UK highlights
· The UK saw a 15% decrease in UK M&A and ECM transactions announced during HY11 compared to HY10 (from 2,316 deals in HY10 to 1,978 deals in HY11).
· A total of £101.8 billion worth of transactions were announced in the UK in HY11, up 7% from the £95.6 billion announced in HY10.
· Rothschild was the best performing financial advisor by volume with 46 deals, while Citigroup was the highest by value with deals worth a total of £23.3billion.
· DLA Piper advised on the highest number of transactions (53) in HY11, while the leading legal advisor by value was Linklaters with deals worth a total of £21.3billion.
Europe and the rest of the world
· Europe saw a 28% decrease in European M&A and ECM transactions announced during HY11 with 4,377 deals compared to 6,040 transactions in HY10
· The values of European transactions rose by over 18% compared to HY10 with £371.1billion recorded in HY11, up from £314.3billion worth of transactions announced in Europe in HY10.
· There was a UK element in 45% of all European transactions, up from 38% in HY10. In terms of value the UK consistently contributes around 30% of the European total each HY.
· The majority of the UK’s deals during HY11 were with the USA, followed by Germany.
· In the USA volumes were down in HY11 by 37% while values were up by 20% compared to HY10.
· Asia Pacific witnessed declines in both volume and value during HY11 by 17% and 12% respectively.
Wendy Smith, Business Development Manager at Experian Corpfin, said: “The first half of 2011 shows that there is still a degree of tentativeness in the market. This is further impacted by the fact that there are fewer business insolvencies to create opportunities and liquidity in the market and, to some extent, the fact that vendors still have high expectations on price. The North West and Wales are the only areas that appear to be bucking the trend at the moment, with both seeing slight increases in the volume of deals.
“Looking across Europe and the rest of the world, around a third of the companies involved in deals are based outside the UK, so it is very much a global market place. It is not surprising that the low activity can be seen across the board.
“Nonetheless, we are in a more optimistic place than we were in a year ago and, as increasing numbers of businesses begin to focus once again on strategic growth rather than cost-cutting, we would anticipate a small rise in deal volumes in the coming year.”
Table 1: Comparison of regional deal activities HY11
Region |
Volume of deals announced |
Value of deals announced (£m) | ||
HY11 |
HY10 |
HY11 |
HY10 | |
London & South East |
1190 |
1348 |
£65,037 |
£81,445 |
South West |
192 |
304 |
£9,875 |
£9,775 |
East Anglia |
107 |
126 |
£2,533 |
£1,067 |
Midlands |
231 |
282 |
£7,245 |
£2,661 |
Yorkshire |
144 |
168 |
£1,854 |
£2,904 |
North West |
299 |
293 |
£5,798 |
£5,486 |
North East |
55 |
85 |
£1,280 |
£2,138 |
Wales |
60 |
53 |
£344 |
£180 |
Scotland |
130 |
212 |
£5,493 |
£3,752 |
Northern Ireland |
13 |
22 |
£232 |
£190 |
UK wide |
1,978 |
2,316 |
£101,812 |
£95,587 |
Table 2: Rest of World summary HY11
Rest of World |
Volume of deals announced |
Value of deals announced (£m) | ||
HY11 |
HY10 |
HY11 |
HY10 | |
Europe |
4,377 |
6,040 |
£371,094 |
£314,337 |
USA |
2,847 |
4,548 |
£375,572 |
£313,405 |
Asia |
5,030 |
6,031 |
£300,074 |
£342,107 |
Table 3: Top five Countries dealing with the UK in HY11
Country |
per cent of deals |
Deal value (£m) |
Deal Volume |
USA |
14.03% |
£32,623 |
278 |
Australia |
2.62% |
£8,073 |
52 |
Germany |
2.57% |
£1,656 |
51 |
India |
2.32% |
£7,587 |
46 |
Ireland |
2.12% |
£6,429 |
42 |
For more detailed reports, please visit: http://www.experian.co.uk/consumer-information/experian-corpfin-resources.html
Ms Serj Heera
0115 992 2773/07837 652169
Notes to editors
*Where consideration disclosed
Deal information is based on transactions announced between 1st January and 27th June 2011 for HY11 figures and 1st January and 30th June 2010 for HY10 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. SME analysis is based on companies registered in the UK or Ireland (excluding the Channel Islands and the Isle of Man) with a turnover of up to £25m including undisclosed.
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