US divestitures update: Q2 2023
Despite a slower start in Q1 2023, the divestitures market experienced significant growth in Q2 2023, with companies looking to reorganize resources through carve-outs and spin-offs.
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 volume
Divestiture transaction volume increased significantly in Q2 2023 compared to Q1 2023. Number of deals reached 528 in Q2 2023 compared to 286 deals in Q1 2023, a growth of 84.6% quarter over quarter, while overall M&A activity grew by only 11.3%.
- Transaction size
In Q2 2023, transactions with deal values above $1 billion accounted for 29.2% of the total disclosed deal volumes compared to 0 deals in Q1 2023. Deals with values less than $250 million accounted for 52.1% of deal volume compared to 71.4% in Q1 2023.
- Acquiror type
Domestic strategic buyers accounted for 52.8% of buyers in divestiture transactions in Q2 2023 compared to 73.1% in Q1 2023. Interest from private equity buyers for divestitures, witnessed significant growth, accounting for 28.8% of the buyers in Q2 2023, compared to 1.8% in Q1 2023.
- Industry focus
Technology once again emerged as the sector of focus for divestitures in Q2 2023, making up 16.5% of all divestiture transactions, followed by Financial Services at 13.1% and Energy & Power with 12.1%.
Deal activity among European acquirors witnessed extraordinary growth in Q2 2023, growing by 216.7% quarter over quarter. They participated in 38 deals in Q2 2023 up from 12 in Q1.
Divestiture activity in the Americas almost doubled in Q2 2023 compared to Q1 2023. The Americas completed 436 transactions in Q2 2023 compared to 229 transactions in Q1 2023.
Divestiture activity in Asia witnessed a 45.5% quarter over quarter increase in Q2 2023 compared to Q1 2023. Asian acquirors closed 16 deals in Q2 compared to 11 in Q1.
Learn more about the trends from 2021-2023 by downloading the following reports
- 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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1Refinitiv data, as of July 12, 2023.