From PwC Deals
Between high valuations for some targets and continued questions about potential tax and regulatory changes, companies and private equity firms are largely pursuing more modest deals in 2017, resulting in higher deal volume and lower value overall.
While the number of megadeals – worth more than $5 billion – was down significantly through September, middle market deals are humming along. Deals with a value of less than $1 billion not only have happened more often, but they’ve also totaled more value than during the same period a year ago.
Cross-border deals also are up over 2016, thanks mostly to buyers in other countries targeting US companies. While outbound deals were down slightly through the third quarter, inbound deals were up 15% compared to last year.
John Potter, US Deals Sector Leader, offers more insight on the latest activity and why the US is still the most attractive global market.
Eye-popping acquisitions are still happening and haven’t been limited to just a few industries. Overall, though, most sectors have seen price tags come down in 2017, and a few are also seeing lower deal numbers than last year.
In addition to fewer megadeals, pharmaceuticals and life sciences has seen deal volume drop steadily since the start of 2016. The sector with the most megadeals so far in 2017, energy, has seen the number of those transactions decline each of the past three quarters.
Other sectors are outpacing last year. Media and telecommunications posted its highest deal volume in two years in the third quarter, and deal value was up significantly from a year ago. Consumer markets has seen higher volume and value overall this year, even with a recent dip in megadeals.
For details on individual sectors, please read the full industry reports below.