Global industrial manufacturing deals insights: Q2 2019
Executive summary
Worldwide and North American cross-sector deal value increased 12% and 20% respectively, from Q1 2019 to Q2 2019, driven by megadeals, which remain prominent. Worldwide and North American cross-sector deal volumes increased 32% and 30%, respectively, during that same period. While industrial manufacturing deal volume was relatively flat quarter-over-quarter, the sector saw a 31% increase in deal value from Q1 2019 to Q2 2019. Industrial manufacturing megadeals activity in Q2 2019 drove deal value to $27.4 billion, which is higher than the robust quarterly average deal value we saw from 2016 to 2018 of $24.6 billion. Year-to-date industrial manufacturing deal activity has been driven by scale transaction, which are primarily focused on product, customer and geographic expansion. While the decline in deal value in Q1 2019 may have been reflective of some deal maker’s concern over trade wars, monetary policy and slowing GDP growth, the strong Q2 2019 M&A results would indicate those concerns have subsided.
Key trends/highlights
- The total deal value reached its peak as compared with last three quarters. With $27.4 billion, the deal value increased by 31% in Q2 2019 vs. Q1 2019. Total deal volume increased slightly by 3% to 562 deals in Q2 2019 from 543 deals in Q1 2019.
- The average deal size decreased by 2% to $108.8 million in Q2 2019 compared to Q1 2019. But the average deal grew by a mere 1% for YTD 2019 when compared with YTD 2018.
- The top three deals in the current quarter accounted for $12.2 billion of deal value or 45% of total disclosed deal value.
- North America contributed the largest deal value primarily driven by one $8.7 billion megadeal in the Industrial Machinery category.
“2019 is shaping up to be the best year for megadeals since 2014 in the industrial manufacturing sector.”
Contact us
Follow us
