See how the M&A market has performed since January 1, 2019 to September 31, 2019 in our KPMG Corporate Finance LLC Activity Report.
Philip J. Isom
Global Head of M&A and Capital Advisory Services Leader, Deal Advisory, KPMG US
+1 312-665-1911
Amid slowing global economic growth and geopolitical tensions, M&A activity has slowed. A few factors that are influencing the slowdown include uncertainty around Brexit, new legislation in the United States that is slowing international deal closings and continued trade tensions. As a result, buyers and sellers have proceeded with caution in 2019.
Low interest rates are making it easier for buyers to access capital while enabling potential sellers to consider capital raises as a mechanism for growth rather than a sale. In addition, we’ve seen buyers pursue transformation via one mega deal rather than several smaller deals.
In this report you will find M&A activity for the first nine months of 2019.
Global M&A volume and value analysis
Global M&A activity
- The volume of announced global transactions during first nine months of 2019 totaled 14,603 deals, reflecting a 24 percent decrease over the corresponding 2018 levels
- The aggregate value of disclosed global transactions during this period was US$731 billion, reflecting ~67 percent decrease over the same period in 2018
Cross border activity
Global Cross Border M&A Comparison
- The percentage of M&A deals involving acquirers and targets from different regions during first nine months of 2019 decreased by 7% when compared to same period in 2018
- In an increasingly unpredictable M&A market that is showing concern over trade wars, monetary policy and slowing GDP growth which have subsided cross-border M&A in 2019 especially pertaining to industries that are subject to government oversight
Industry Breakdown of Cross-Border Deals
Mid-Market volume and value analysis
U.S.- based M&A mid-market transactions represented 30 percent of the total volume of global mid-market M&A transactions during first nine months of 2019. mid-market M&A transaction value, fell by ~38 percent for global deals and by ~25 percent for U.S. deals.
Global mid-market M&A activity
- The volume of announced global mid-market transactions during first nine months of 2019 totalled 14,391 deals, reflecting a 23 percent decrease over the corresponding 2018 levels
- The aggregate value of disclosed global mid-market transactions during this period was $205 billion, reflecting a ~38 percent decrease over the same period in 2018
U.S. mid-market M&A activity
- The volume of announced U.S. mid-market transactions during first nine months of 2019 totalled 4,340 deals, reflecting a decrease of 20 percent over the corresponding 2018 levels
- The aggregate value of disclosed U.S. mid-market transactions during this period was $62 billion, reflecting a ~25 percent decrease over the same period in 2018
Americas mid-market M&A activity
- Americas mid-market M&A transaction volume totaled 5,253 deals during first nine months of 2019, reflecting a 23 percent decrease from the 6,830 deals announced during the same period in 2018
- The total transaction value of disclosed Americas mid-market M&A deals decreased by 30 percent to US$78 billion, down from US$110 billion during the corresponding 2018 levels
AsPAC mid-market M&A activity
- AsPAC mid-market M&A transaction volume totaled 2,234 deals during first nine months of 2019, reflecting a 30 percent decrease from the 3,170 deals announced during the same period in 2018
- The total transaction value of disclosed AsPAC mid-market M&A deals decreased by ~56 percent to $42 billion, down from $95 billion during the corresponding 2018 levels
EMA mid-market M&A activity
- EMA mid-market M&A transaction volume totaled 5,202 deals, reflecting a 20 percent decrease from the 6,532 deals during the same period in 2018
- The value of disclosed EMA mid-market transactions saw a decline of ~36 percent to $47 billion, compared with $74 billion during the corresponding period last year
U.S. PE and Corporate mid-market M&A Activity
Corporate mid-market M&A activity
- Corporate mid-market M&A during first nine months of 2019 accounted for 66 percent of total U.S. transactions
- Mid-market M&A transaction volume totaled 2,883 deals, reflecting a 24 percent decrease from the 3.800 deals announced during the same period in 2018
- The value of disclosed mid-market corporate transactions saw a decline of 25 percent to $49 billion, compared with $64 billion during first nine months of 2018
Private equity (PE) mid-market M&A activity
- PE mid-market M&A deals during first nine months of 2019 accounted for 34 percent of total U.S. transactions
- PE mid-market transaction volume totaled 1,457 deals during first nine months of 2019, reflecting an 11 percent decrease from the 1,640 deals announced during the same period in last year
- The total transaction value of disclosed PE mid-market M&A deals decreased by 28 percent to $14 billion, compared with $19 billion during first nine months of 2018