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A financial money-go-round?

The Deloitte US-UK M&A Deal Monitor 2018 H1

Overview

Welcome to the sixth edition of the US-UK M&A Deal Monitor, tracking the deals across the world’s most valuable intercontinental deal corridor.

In this edition, we examine the types of buyers and sellers that participate in the US-UK deal corridor and report on the notable differences in their behaviour. Our research uncovers a significant bias in Financial to Financial sales vs Financial to Corporate sales.

Consistently in both directions, and across the two years analysed, Financial sellers are twice as likely as other sellers to sell to another Financial buyer (39% vs 17%), and Financial buyers are more than twice as likely to buy from another Financial seller (23% vs 9%).

Our report delves deeper into this financial money-go-round, exploring the factors underpinning this behaviour, and considering its implications for the industry as a whole. We’ve backed up our own perspectives and insights with a series of candid interviews with leading private equity investors from both sides of the Atlantic.

  • Source: Thomson One Banker
N.B Deal value calculations are based on M&A deals for which value is disclosed – values are not disclosed for a significant proportion of M&A deals. Volume calculations are based on all announced deals whether or not value is disclosed.
  • Source: Thomson One Banker
N.B Deal value calculations are based on M&A deals for which value is disclosed – values are not disclosed for a significant proportion of M&A deals. Volume calculations are based on all announced deals whether or not value is disclosed.
  • Source: Thomson One Banker
N.B. Volume calculations are based on all announced deals whether or not value is disclosed.

US outbound deal volume by UK regions - Q1 2016 to Q1 2018

UK outbound
US outbound
London
214
South East
118
East
50
North West
35
South West
36
West Midlands
28
East Midlands
26
Scotland
26
Yorkshire & The Humber
26
Wales
14
North East
6
Northern Ireland
6
Offshore
1
Others
101
  • Source: Thomson One Banker
N.B Volume calculations are based on all announced deals whether or not value is disclosed.

UK outbound deal volume by US States - Q1 2016 to Q1 2018

US outbound
UK outbound
California
89
New York
65
Texas
32
Massachusetts
23
Florida
22
Delaware
21
New Jersey
19
Pennsylvania
17
Illinois
16
Minnesota
11
Others
121
  • Source: Thomson One Banker
N.B Volume calculations are based on all announced deals whether or not value is disclosed.

About this report

The US-UK M&A Deal Monitor analyses the deal flows in order to identify the trends and commercial and economic drivers of activity across the busiest and most valuable intercontinental deal corridor. Our report is based on the authors’ analysis of the deals completed over the most recent eight quarters; this edition covering the periods 2016 Q3 to 2018 Q2 inclusive.

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