Analysis
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.
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 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%.
Regional trends2
- Europe
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. - Americas
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. - Asia
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.
Previous editions:
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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References
1Refinitiv data, as of July 12, 2023.
2Ibid.
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