The large-sized buyouts around the world this year might make the headlines, but mid-market deals are the cornerstone of global M&A activity. Deals between USD 10 million to USD250 million “consistently” represent about 30% of the overall M&A market over the last five years, according to a new report called The Mid-Market: M&A’s Core, by NASDAQ OMX and Mergermarket.
However the trend for mid-market M&A is trending slightly downwards due to the economic prospects in Europe and slower growth in Emerging Markets. Private equity plays a role in these kinds of deals but not as big a role as one might expect. Year-to-date 2013, there have been 452 buyouts by PE players worth USD35 billion or about 12% of deals in the mid-market, while there were 393 exits worth USD 35 billion or about 11% of totals.
- M&A by private equity players has gone down in the past two years (See chart above). Global mid-market private equity volume saw a drop in 2012 from 2011’s levels, although 2013’s numbers are currently keeping pace with last year’s volume.
- The Asia-Pacific region saw the most deal activity with 1,317 transactions for 2013 year-to-date
- Cross-border mid-market activity in the same deal range comprises 42% of deal volume and 45% of deal value compared with the overall mid-market deal volume of 3,719 deals worth USD 246bn (Image source: Mergermarket)