Global automotive deals insights: Q1 2019

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Executive summary

Deal value for Q1 2019 came in at $15.5 billion, down 43% from Q1 2018 and 56% from Q4 2018. While 2018 saw unprecedented deal value driven by a record 20 megadeals, Q1 opened 2019 with only one megadeal. Deal volume is down to its lowest point since Q2 2017 at 201 deals announced, down 30% from Q1 2018 and 18% from Q4 2018. Certain macro factors played a role this quarter including continued uncertainty over trade deals between the US and China, as well as a no-deal Brexit. Nonetheless, excluding megadeals, deal volume was not far off from historical averages as deal value came in above the quarterly average in 2017 and volume remains above the 200 deal threshold.

Key trends and highlights

  • In Q1 2019, total deal value declined by 43% to $15.5 billion, from $27.2 billion in Q1 2018. In addition, total deal value in Q1 2019 dropped by 56% when compared to the previous quarter.
  • The total deal volume witnessed a decline of 30% to 201 deals in Q1 2019, from 287 in Q1 2018. When compared to Q4 2018, total deal volume declined by 18% in Q1 2019.
  • With a value of $262.2 million, average disclosed deal size declined by 28% and 30% when compared with Q1 2018 and Q4 2018. This is due to limited megadeal activity in the quarter compared to $16.2 billion in Q1 2018 and $20.4 billion of megadeal value in Q4 2018.

"Automotive M&A got off to a slow start in 2019 as companies digest all of the 2018 activity.”

Jeff Zaleski, US Automotive Deals Leader

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Jeff Zaleski

US Automotive Deals Leader, PwC US

Ray Telang

Automotive Leader, PwC US

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