Global Engineering and Construction M&A activity remained strong in terms of deal volume and relatively stable from a deal value perspective in 2016. The year closed 4% lower in total deal value but experienced a 23% increase in total deal volume compared to 2015 as buyers remained active with smaller “tuck-in” or niche acquisitions.
The majority of deal activity in 2016 occurred in the Construction Machinery and Materials Manufacturing categories, with notable influences from China, India, and the United States. Asia & Oceania continues to be the region with the most M&A activity by volume, accounting for 62% of acquirers and 63% of targets in global transactions this year.
Moving into 2017, continued uncertainties around the globe are likely to influence M&A activity despite a robust US economy. We see upside in the US with potential legislation around infrastructure spend and corporate tax reform increasing interest in US assets both domestically and inbound from buyers looking for growth. Globally, there continue to be a number of questions that could have significant implications. A number of these will likely start to play out in the first half of 2017; for now, we expect to see continued activity in the small to mid-size transactions and use of strategic partnerships as companies look to balance non-organic growth and risk.
For our full report and additional information on the Top 10 Deals announced for the year, our regional and subsector analyses, and the Outlook for this sector, please remember to download our