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Analysis

US divestitures update: Q4 2023 

Divestitures activity remained at near-term record levels in Q4 2023 since showing significant growth in Q2 2023. Divestitures accounted for 25.5% of all M&A transactions in Q4 2023 as compared to 10.5% in Q1 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
    Divestiture transaction volume increased in Q4 2023 with number of deals reaching 512 compared to 460 in Q3 2023 and 249 deals in Q4 2022. Additionally, divestitures made up 25.5% of total M&A activity compared to 19.7% in Q3 2023 and 9.8% in Q4 2022.
  • Transaction size
    In Q4 2023, transactions with deal values above $1 billion accounted for 21.0% of the total disclosed deal volumes compared to 42.0% of the deals in Q3 2023. Deals with values less than $250 million accounted for 62.5% of deal volume compared to 45.5% in Q3 2023.
  • Acquiror type
    Domestic strategic buyers accounted for 50.8% of buyers in divestiture transactions in Q4 2023, a decrease from 79.1% in Q4 2022. Interest from private equity buyers has filled this gap, accounting for 32.4% of the buyers in Q4 2023, compared to 2.8% in Q4 2022, a new near-term record.
  • Industry focus
    Industrials and High Technology remained as the areas of focus for divestitures in Q4 2023, making up 14.8% and 14.5% of all divestiture transactions, respectively. Financials secured the third-highest concentration, comprising 11.9% of all transactions.

 

neon hair tie

Regional trends2
  • Europe
    Divestitures deal activity among European acquirors witnessed marginal increase in Q4 2023, increasing by 9.7% quarter over quarter. They participated in 34 deals in Q4 2023 up from 31 in Q3 2023.
  • Americas
    Divestiture activity in the Americas increased by 13.2% in Q4 2023 compared to Q3 2023. The Americas completed 436 transaction in Q4 2023 compared to 385 transactions in Q3 2023.
  • Asia
    Divestiture activity in Asia declined by 8.3% quarter over quarter in Q4 2023 compared to Q3 2023. Asian acquirors closed 11 deals in Q3 compared to 12 in Q3.

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References

1Refinitiv data, as of December 31, 2023
2Ibid.

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References

1Refinitiv data, as of July 12, 2023.
2Ibid.

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