Over the last decade private equity firms (PE firms) have become increasingly dominate players in the M&A market. As dry powder increases, PE firms are able to outbid strategic buyers for the most attractive targets. With many strategic buyers turning their focus to organic growth and solidifying their core businesses, PE firms have the opportunity to continue taking a larger share of the M&A market.
PE firm appetite is reaching new heights
2.7x more PE firm deals compared to 2009
2000+ PE firm deals closed annually since 2016
1/3 fewer (approximately 2000 total) corporate deals in 2019 vs 2017 as corporates continue to focus on internal growth
Percent of M&A activity that involved PE firms
Dry powder continues to skyrocket
Nearly 3x more compared to 2012
1.8x increase over 10 years
Doubled since 2015
50% increase in three years (since 2017)
PE firms activity by industry
In 2019, PE firm deals were focused in the following industries:
- Technology, media & telecommunications
- Consumer
- Industrials
While the election, continued trade tensions and the future Brexit create uncertainty around the future of deal activity, PE firms have the resources to acquire the most attractive targets that come to the market in 2020.