Q1 2019 saw a ratcheting back on the throttle of deal activity. Deal makers appeared to view the economic uncertainty around the globe as significant enough to pause and reevaluate the strategic fit of acquisitions to the overall corporate or financial sponsor strategy. After a relatively strong 2018, deal momentum subsided with Q1 deal value registering $18.4 billion, a 30% decrease from the 2018 quarterly average. That said, megadeals remained prominent representing 35% of aggregate disclose value. Deal volume registered its lowest single quarter since Q4 2014 when there were an equal 499 deals. This is largely due to geopolitical uncertainty as it relates to globe trade wars and growth slowdowns primarily in the US, Europe and China. Amid all this uncertainty, deal makers will still look to M&A to accelerate growth and drive their innovation strategy while keeping true to the fundamentals they use to evaluate economics and strategic fit.
“Given the prominence of megadeals in a declining global economic environment, the megadeals segment of the M&A market appears to be decoupling from the broader global economy.”
Industrial Products Deals Leader, PwC US
Tel: +1 (313) 394 3517
Global Industrial Manufacturing Leader, PwC Switzerland