According to the Mergermarket report Q2 2013 global mid-market M&A outpaced Q1 at US$ 127bn, a 5.1% increase over the prior quarter which saw US$ 120.8bn in deals. This puts the H1 2013 total at US$ 247.8bn, a 14% decrease from the comparable period in 2012 and resulted in the lowest H1 since H1 2009 (US$ 133.6bn).
Mid-Market M&A in the U.S.
Mergermarket report stated that Mid-market M&A in the U.S. concluded H1 with 82 deals worth US$ 80.1bn, a 20.4% drop in volume and a 22.7% drop in value from H1 2012 (103 deals, US$ 103.6bn). The U.S. saw a higher drop for mid-cap deals compared to Europe for both value and volume because of a new-found faith in large-cap U.S. deals where 30 deals worth US$ 199.8bn was an increase of 59% by value and 20% by volume from H1 2012 (25 deals, US$ 125.7bn) for this deal size bracket after sizeable mega-deals. Even though Q2 performance for the U.S. saw 43 deals worth US$ 40.9bn, the worst Q2 since 2011 (US$ 40.3bn, 47 deals), it did show a 4.5% increase in value and a 10.3% increase for number of deals from Q1 2013 (39 deals worth US$ 39.2bn) providing reason to believe deal activity will continue the pick up in H2.
Mid-Market M&A in Europe
Mergermarket report noted Europe ended H1 2013 with 78 deals worth US$ 73.3bn, representing a 12.3% decrease in value and a 12.4% drop in volume from the comparable period last year (89 deals, US$ 83.6bn). Europe’s Q2 performance saw 44 deals worth US$ 40.7bn, a 24.8% increase in value from Q1 2013 (34 deals, US$ 32.6bn) – a Q2 trend also seen in the U.S. which gives way for anticipation over M&A in the mid-market bracket in H2. However, Q2 was also the worst second quarter performance since Q2 2009 (28 deals, US$ 26.7bn). Europe’s 29.6% value market share of global mid-market M&A by value in H1 was slightly higher than the 29% seen last year. Q2’s market share though, at 32%, was an increase from 27% in Q1 and also contributed more than Q2 2012 (28%).
Mid-Market M&A in Asia-Pacific (excl. Japan)
Mergermarket report highlighted that Asia-Pacific (excl. Japan) saw 61 deals in H1 2013, valued at US$ 58bn: it was the only area in this report to see increased mid-market M&A activity from H1 2012, up 40% in value and a 41.9% increase in volume from H1 2012 (43 deals, US$ 41.4bn). The H1 hike comes regardless of the region’s Q2 performance which saw 26 deals worth US$ 24.7bn, the worst second quarter performance since Q2 2010 (20 deals, US$ 18.1bn). Q2 decreased 26% by value and 25.7% by volume from the Q1 (US$ 33.3bn, 35 deals).