Through the first half of 2018 deal momentum was robust and we expected deal value and volume to significantly outpace 2017; however, that didn’t materialize. After a strong Q2 2018 where deal value eclipsed $42 billion, the industrial manufacturing sector saw double digit declines in volume while contributing only $35 billion of additional deal value in the second half of 2018. With that said, 2018 deal value was $97.4 billion, an 11% increase compared to 2017 fueled by more megadeals. Deal volume significantly dropped off in the second half of 2018 primarily resulting from geopolitical uncertainty, downward GPD growth concerns in the US and China as well as volatility in the stock markets. Amidst all this uncertainty we remain cautiously optimistic the M&A landscape in 2019 will continue to be an attractive play for deal makers.
“The year was certainly ‘a tale of two halves’ for Industrial Manufacturing deal makers, with the latter causing deal makers to pause and question what is to come.”
Industrial Products Deals Leader, PwC US
Tel: +1 (313) 394 3517
Global Industrial Manufacturing Leader, PwC Switzerland
Tel: +41 58 792 8239