Abstract circle

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.

${column-img-description}

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.

interconnecting neon dots and lines

This newsletter is a periodic compilation of certain completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Any reference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy, or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients and friends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties, and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.

References

1Refinitiv data as of October 10, 2024.

2Ibid.

Did you find this useful?