Assembling value: First-quarter 2009 mergers and acquisitions analysis

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Welcome to Assembling value: First-quarter 2009 mergers and acquisitions analysis, PricewaterhouseCoopers' report devoted to the industrial manufacturing industry.

We continue to analyse M&A activity in the industrial manufacturing industry and have been publishing new Assembling valuereports each quarter since 2008. These quarterly analyses include information on individual mergers and acquisitions for disclosed or undisclosed values, leveraged buyouts, privatisations, minority stake purchases, acquisitions of remaining interest and other important information.

According to the report, mergers and acquisitions in the global industrial manufacturing industry continued to be depressed during first quarter 2009. Deal activity remained at a near stop during the first quarter, with only 13 deal announcements, a fraction of the 141 deals announced in 2008 and 206 in 2007. Total deal value declined 75 percent from the same time last year, with only $2 billion announced in first quarter 2009, down from $8 billion in first quarter 2008. With the absence of large deal announcements in first quarter 2009, average deal value also suffered, averaging only $126 million compared with $185 million in first quarter 2008 and $273 million in first quarter 2007.

In addition to a detailed summary of M&A activity in the first quarter of 2009, this issue includes a special report that addresses the effect of the national stimulus bill and the developments in the auto industry on the industrial manufacturing sector. Included in the discussion are ways in which automotive losses translate to difficulties for industrial manufacturing companies as well as their efforts for long-term restructuring.