Deal value in Q2 2019 hit $8 billion, down 51% from Q1 2019, driven by a lack of megadeals this quarter and continued softness in deal activity. Deal volume in Q2 has reached a four-year low at 182 deals, down 33% from Q2 2018 and 18% from Q1 2019. Despite decreases in value and volume, YTD 2019 average disclosed deal size excluding megadeals is consistent with the comparable YTD period in 2018 at $136 million. As the sector transitions through its cyclical phases, companies are evaluating deals pursuit strategies and are taking a harder look at positioning themselves for leaner times. Nonetheless, the need to stay competitive in changing times is ever present so expect some volatility in the quarters to come.
“The decline in Automotive M&A activity reflects the significant challenges facing the industry.”
US Automotive Deals Leader, PwC US
Automotive Leader, PwC US