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The Deloitte US/UK M&A Deal Monitor H2 2017

Decision time

Overview

The global flow of mergers and acquisitions is an indicator of the vitality of the global corporate economy. In the US/UK M&A corridor the last two years have seen record activity.

As asset valuations climbed ever higher through 2017, financial conditions remained easy. Private equity buyers are still sitting on a $1 trillion mountain of undeployed capital, while strategic buyers are cash rich. This gives them powerful financial leverage when it comes to dealmaking. It looks like a perfect setting for another record year for M&A in 2018.

The outlook for the US/UK M&A corridor includes some unique challenges, however, the US and UK remain two of the world’s most competitive and creative economies.

In this report, we take a closer look at three issues that are critical to the evolution of dealmaking between the US and UK;

  • ‘Brexit’, the UK’s exit from the European Union – we set out to clarify some of the uncertainties surrounding the process; the likely final terms of the separation and the UK’s ongoing trading relationships
  • Innovation and technology – tech continues to drive the US/UK deal corridor as both economies are viewed as centres for technology, innovation and collaboration. We take a look at why they are attractive as key innovation hubs
  • US tax reforms – we explore the impact they may have on transatlantic M&A.

US/UK cross-border M&A deals

  • 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.

US/UK deal volume and value by industry Q1 2016-Q4 2017

  • 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.

Corporate and private equity deals by volume

  • 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 Q4 2017

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 Q4 2017

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

Our US/UK M&A Deal Monitor follows trends and analyses underlying driving forces in the most active merger and acquisition arena in the world economy today. The data focus on the latest half-year of M&A activity (July 2017 – December 2017) between the US and the UK, set in the context of the most recent eight quarters of M&A activity in the US/UK ‘corridor’.

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