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Future of the deal

The Deloitte US-UK and Europe M&A Deal Monitor March 2019

Overview

Welcome to the seventh edition of the Deloitte US-UK M&A deal monitor, which we have now extended to include transatlantic M&A activity between the US and Europe as a whole.

In this edition we explore the apparently diverging fortunes of our two “corridors”: US-UK, and US-Europe, and consider this in the context of over global M&A trends – both domestic and cross border.

There has been a marked downturn in global M&A activity, by the volume of completed deals – counting by the volume of completed deals – notably in the second half of 2018. This has brought overall deal volumes the range seen during 2009, when financial markets tumbled – suggesting increased nervousness around the financial outlook for the global economy.

Perhaps surprisingly in the context of political and economic news, it is the UK and UK which are bucking this trend, where deal volumes have remained comparatively stable over the past few years, and increasing the share of global M&A involving US and UK businesses to 43% (up from 36% in 2016).

This pattern is replicated in the respective M&A deal corridors, with a 20% reduction between US-Europe, while US-UK has remained stable. Technology is driving M&A – both overall globally, but specifically within the corridors, with over a third of transatlantic acquisitions being of TMT businesses.

Following from our previous report, we also see a divergence between the behaviour of financial sponsors between US-UK and US-Europe. With financials in the US and UK more likely to exit in a secondary sale to another financial, as compared with the market overall, or financials in Continental Europe.



US-UK / US-Europe M&A deals

  • Source: Thomson One from Refinitiv
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 from Refinitiv
N.B Volume calculations are based on all announced deals whether or not value is disclosed.
  • Source: Thomson One from Refinitiv
N.B Volume calculations are based on all announced deals whether or not value is disclosed.

Deals focused on key European economies

About this report

The data used in the US UK and Europe M&A deal monitor is based on Deloitte analysis of deal volumes and values as recorded by Thomson One from Refinitiv as of February 2018. This report analyses deals completed between 2006 and 2018, inclusive. Where referenced, deal value calculations are based on M&A deals for which value is disclosed – values were not disclosed for over two thirds of the analysed deals, with significant volatility driven primarily by individual high value deals. Thus it is the authors’ view that deal volumes provide the more reliable and meaningful indicator of overall trends in the M&A market, and this forms the basis of our analysis.

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