M&A totals for Europe were down in 2013 but Merrill Corp says in its latest report that the dealmaking market may improve this year due to the large number of companies for sale that it is tracking. The report explained the downturn in last year’s figures like this: “a sizeable spike in dealmaking in the final quarter of 2012 led to a lull in activity during the first quarter of 2013, as M&A pipelines were restocked. This weak first quarter had a detrimental impact on figures for 2013 as a whole, with the value of dealmaking down by 14% YoY.” Regional figures show that Central and Eastern Europe was the most active region in Europe for M&A in 2013.
The drop in deal value total also reflects fewer mega-deals, those with a target valued at more than EUR 5bn generating M&A worth EUR 94.6bn, compared to EUR 161.8bn in 2012. The data drawn from MergerMarket suggests that from the second quarter onward, dealmaking was robust in terms of volumes, with quarterly figures near to their post-crisis highs. Merrill says this “bodes well for dealmaking in 2014” and that the the smaller, bolt-on deals that characterized the past 12 months will be joined by an increased number of large, transformative transactions. (Image source: Merrill Corp)