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Zephyr and Unquote Reveal M&A and Exit Activity Decline, Despite Recent Headline Deals

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September 5, 2013

It might look like Europe’s exit activity is on the increase because of the high level of press coverage of M&A deals, but unquote says the real numbers tell a different story.

 

The value and volume of divestments is far below the previous years, according to unquote’s data. The number of exits recorded in the first seven months of 2013 is down compared to 2012 and to the high figure of 2011 when the total reached EUR 103bn across all of Europe in exits. The unquote analysts say that the level of activity is unlikely to change in the latter half of the year – because August to November period is traditionally quieter.

 

The analysts say that they find these figures “surprising” as it feels as though 2013 has been rife with disposals. The reason the divestment deals are getting attention is they are yielding sizable returns, “reopening routes once believed to be closed and taking place in neglected geographies”.

 

Elsewhere the Western European news from Zephyr says that the summer lull brought M&A value down to 12-month low. However PE activity was stronger.

 

The value of investment in the region remained fairly level, falling back by just two per cent over the previous four week period from EUR 4,763 million. Value was up 7 per cent year-on-year, outperforming the EUR 4,360 million recorded in August 2012, according to Zephyr, the M&A database published by Bureau van Dijk.

 

In the Middle East the four week levels of both volume and values declined by 16% and 17% respectively, according to Zephyr, as did activity in the North American market.

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