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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.

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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.

US divestitures update: Q2 2024
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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.

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Previous editions:

Learn more about the trends from 2021-2023 by downloading the following reports

 

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References

1Refinitiv data as of June 30, 2024.

2Ibid.

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