Deloitte Corporate Finance released its August 2013 Middle Market Merger and Acquisitions News. Highlights include:
M&A activity remains steady – Despite the slight quarter-over-quarter decline in middle-market M&A activity in the second quarter, on a last-twelve-month (LTM) basis the M&A market has shown some growth. According to Thompson Financial, LTM Q2/13 value and volume were $187 billion and 7,993 deals. This is a respective increase of 0.9% and 6.8% over LTM Q2/12.
Private equity improves capital position despite sluggish deal activity – U.S. middle-market private equity acquisition activity showed mixed results in LTM Q2/13 with declining value but growth in deal volume. The period’s value and volume were $31.6 billion and 1,507 transactions, representing a 5.2% decrease in value and 5.9% increase in volume over LTM Q2/12, according to Thompson Financial. Through the first half of 2013 PE had already raised $73 billion, which is 66% of the total capital raised in all of 2012, according to Pitchbook.
International investment in U.S. companies grows – International investment in U.S. companies via M&A activity has shown recent improvement with LTM Q2/13 foreign acquirer M&A values at $37.2 billion and volume at 1,125 deals, according to Thompson Financial. This is an increase of 7.4% and 2.6% in value and volume, respectively, over Q2/12.