Middle Market M&A News: June 2014
Deloitte Corporate Finance LLC
The June 2014 edition of Middle Market Merger and Acquisitions (M&A) News, produced by Deloitte Corporate Finance LLC, includes the following highlights:
- M&A activity declines in first quarter - Middle market M&A activity declined sharply in the first quarter of 2014 with decreases of 28% and 11% in deal values and volumes, respectively, over the fourth quarter of 2013 (per Thomson Reuters). However, on a year-over-year basis, Q1 2014 is in-line with the prior year with a 0.6% decline in value but a 6.1% increase in volume (per Thomson Reuters). This trend of slow starts to the year has been consistent every year since the global financial crisis.
- Private equity deal activity declines along with the rest of the market - Similar to overall middle market M&A activity, private equity (“PE”) deal value and volumes declined in Q1 2014 by 38% and 9%, respectively, compared to Q4 2013. On an LTM basis, their results were relatively steady with only minor declines of 1% and 2% in value and volume, respectively, compared to LTM Q1 2013 (per Thomson Reuters). This Q1 performance is in-line with the past few years, and is an indicator that PE activity in 2014 should continue to remain relatively strong (per PitchBook).
- International investment in U.S. companies decreases - International investment in U.S. companies via M&A activity has continued to decline since its post-recession peak in 2011 with LTM Q1 2014 values at $31.0 billion and volume at 1,048 deals (per Thompson Reuters). This is a decline of 18.6% and 7.7% in value and volume, respectively, over LTM Q1 2013.
To learn more, read this month's Middle Market M&A News.