Divestiture M&A News: November 2009
Deloitte Corporate Finance LLC
The November 2009 edition of Divestiture M&A News, produced by Deloitte Corporate Finance LLC, includes the following highlights:
- Increase in Divestiture Volumes and Deal Values: Despite an 8 percent decline in transaction volume in the overall M&A market from CY2008 to Q3 2009LTM, divestiture activity continued to remain strong increasing by 1.5 percent during the same period.
- Strategic Buyers and Sellers Drive M&A Markets: Historically, divestitures have exhibited lower valuation multiples relative to overall M&A transactions due to the limited availability of historical financial data and uncertainty around standalone operational performance. However, recent trends in EV/EBITDA multiples show a decreasing spread in valuation multiples between the overall M&A market and divestitures.
- Weak Dollar Drives Significant Increase in Foreign Buyers of U.S. Targets: The recent weakening of the U.S. dollar combined with reduced valuations has helped drive a significant increase in foreign strategic acquirers of U.S. divestiture targets.
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