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.
“2019 is shaping up to be the best year for megadeals since 2014 in the industrial manufacturing sector.”