Middle Market M&A News: August 2014
Deloitte Corporate Finance LLC
The August 2014 edition of Middle Market Merger and Acquisitions (M&A) News, produced by Deloitte Corporate Finance LLC, includes the following highlights:
- Middle market M&A activity improves in Q2 - Middle market M&A activity showed signs of improvement in Q2 2014 with a large increase in deal value of 26.0% and a slight decline in volume of 3.1% compared to Q1 2014. On a year-over-year basis, Q2 2014 showed strong growth with respective increases of 35.5% and 11.2% in deal value and volume (per Thomson Reuters).
- Private equity deal activity driven by add-on acquisitions - Recent private equity deal activity has been primarily driven by the growth in add-on acquisitions. Add-ons for the first half of 2014 accounted for 61% of deals completed thus far, up from 55% in 2013. With this increase in activity, add-ons are now at their highest relative levels in ten years (per PitchBook).
- U.S. investment into foreign markets continues to expand - Investment by U.S. companies into foreign countries via M&A activity has continued to grow. Q2 2014 saw quarter-over-quarter increases of 3.2% and 5.9% in deal value and volume, respectively. For LTM Q2 2014 the value of U.S. acquisitions of middle market foreign companies was at $47.7 billion, which is an increase of 21.1% over LTM Q2 2013 (per Thompson Reuters).
To learn more, read this month's Middle Market M&A News.