Analysis
US divestitures update: Q3 2024
After showing notable growth since Q2 2023, divestiture activity declined marginally in Q3 2024. Divestitures accounted for 28.0% of all M&A transactions in Q3 2024 as compared to 19.5% in Q3 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.
Transaction Trends1
- Transaction volume
US Divestiture transaction volume declined in Q3 2024 compared to Q2 2024. The number of deals dropped to 527 compared to 569 deals in Q2 2024. Additionally, divestitures made up 28.0% of total M&A activity in Q3 2024 compared to 22.7% in Q2 2024 and 19.5% in Q3 2023.
- Transaction size
In Q3 2024, US transactions with deal values above $1 billion accounted for 41.0% of the total disclosed deal volumes compared to 24.0% of the deals in Q2 2024. Deals with values less than $250 million accounted for 47.1% of deal volume compared to 48.5% in Q2 2024.
- Acquiror type
Domestic strategic buyers accounted for 49.5% of buyers in divestiture transactions in Q3 2024, a decline from 53.5% in Q3 2023. Interest from private equity buyers has filled this gap, accounting for 33.6% of the buyers in Q3 2024, compared to 29.6% in Q3 2023, a new near-term record.
- Industry focus
High Technology and Industrials remained the areas of focus for divestitures in Q3 2024, making up 15.0% and 12.7% of all divestiture transactions, respectively. Healthcare accounted for the third-highest concentration, comprising 11.8% of all transactions.
Regional trends2
- Europe
Divestitures deal activity among European acquirors witnessed a decline in Q3 2024, decreasing by 11.6% quarter-on-quarter. They participated in 38 deals in Q2 2024 down from 43 in Q2 2024.
- Americas
Divestiture activity in the Americas decreased by 5.6% in Q3 2024 compared to Q2 2024. The Americas completed 439 transactions in Q3 2024 compared to 465 transactions in Q1 2024.
- Asia
Divestiture activity in Asia increased by 15.4% quarter-on-quarter in Q3 2024 compared to Q2 2024. Asian acquirors closed 15 deals in Q3 2024 compared to 13 in Q2 2024.
Previous editions:
Learn more about the trends from 2021-2023 by downloading the following reports
- US divestitures quarterly update: Q2 2024
- US divestitures quarterly update: Q1 2024
- US divestitures quarterly update: Q4 2023
- US divestitures quarterly update: Q3 2023
- US divestitures quarterly update: Q2 2023
- US divestitures quarterly update: Q1 2023
- US divestitures quarterly update: Q4 2022
- US divestitures quarterly update: Q3 2022
- US divestitures quarterly update: Q2 2022
- US divestitures quarterly update: Q1 2022
- US divestitures quarterly update: Q4 2021
- US divestitures quarterly update: Q3 2021
- US divestitures quarterly update: Q2 2021
- US divestitures quarterly update: Q1 2021
- US divestitures update: 2020 year in review
- US divestitures quarterly update: Q1 2020
- US divestitures quarterly update: Q2 2020
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References
1Refinitiv data as of October 10, 2024.
2Ibid.