Abstract circle

Analysis

US divestitures update: Q2 2024

Divestitures activity remained at near-term record levels in Q2 2024 since showing significant growth in Q2 2023. Divestitures accounted for 24.5% of all M&A transactions in Q2 2024, as compared to 20.8% in Q2 2023.

Industrial trends

Our quarterly report focuses on:

  • US divestiture volume, value, and reported multiples.
  • US divestitures by buyer type.
  • US divestitures by industry.
  • Cross-border divestitures activity.

${column-img-description}

Transaction Trends1

  • Transaction volume
    Divestiture transaction volume remained constant with 569 deals in Q2 2024, compared to 568 in Q1 2024 and 528 deals in Q2 2023. Additionally, divestitures made up 24.5% of total M&A activity in Q2 2024, compared to 23.9% in Q1 2024 and 20.8% in Q2 2023.
  • Transaction size
    In Q2 2024, transactions with deal values above $1 billion accounted for 24.0% of the total disclosed deal volumes, compared to 18.0% of the deals in Q1 2024. Deals with values less than $250 million accounted for 48.5% of deal volume, compared to 54.0% in Q1 2024.
  • Acquiror type
    Domestic strategic buyers accounted for 53.6% of buyers in divestiture transactions in Q2 2024, a slight increase from 52.8% in Q2 2023. Interest from private equity buyers accounted for 29.4% in Q2 2024, compared to 28.8% in Q2 2023, near the term record of 32.4% in Q4 2023.
  • Industry focus
    High Technology and Industrials remained as the areas of focus for divestitures in Q2 2024, making up 15.1% and 13.7% of all divestiture transactions, respectively. Health care secured the third-highest concentration, comprising 11.4% of all transactions.

Regional trends2
  • Europe
    Divestitures deal activity among European acquirors witnessed an increase in Q2 2024, increasing by 19.4% quarter over quarter. They participated in 43 deals in Q2 2024, up from 36 in Q1 2024.
  • Americas
    Divestiture activity in the Americas decreased by 2.1% in Q2 2024, compared to Q1 2024. The Americas completed 465 transactions in Q2 2024, compared to 475 transactions in Q1 2024.
  • Asia
    Divestiture activity in Asia decreased by 14.3% quarter over quarter in Q2 2024, compared to Q1 2024. Asian acquirors closed 12 deals in Q2 2024, compared to 14 in Q1 2024.

interconnecting neon dots and lines

This newsletter is a periodic compilation of certain completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Any reference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy, or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients and friends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.

References

1Refinitiv data as of June 30, 2024.

2Ibid.

Did you find this useful?