M&A Activity Down In July

M&A Activity Down In July by FactSet

US M&A deal activity decreased in July, down 5.0% with 930 announcements compared to 979 in June. Aggregate M&A spending decreased as well. In July, 4.6% less was spent on deals compared to June.

M&A Activity

Over the past three months, the sectors that have seen the biggest increases in M&A deal activity relative to the same three month period one year ago, have been:

Process Industries (135 vs. 121)
Non-Energy Minerals (65 vs. 60)
Government (8 vs. 4)
Consumer Durables (56 vs. 52)
Communications (43 vs. 42)

Six of the 21 sectors tracked by FactSet Mergerstat posted relative gains in deal flow over the last three months compared to the same three months one year prior.

Sector by Activity
Target Sector	L3M 7/31/16 Deal Count	L3M 7/31/15 Deal Count	Difference
Process Industries	135	121	14
Non-Energy Minerals	65	60	5
Government	8	4	4
Consumer Durables	56	52	4
Communications	43	42	1
Industrial Services	131	130	1
Utilities	61	61	0
Miscellaneous	8	8	0
Energy Minerals	38	43	(5)
Consumer Non-Durables	87	106	(19)
Producer Manufacturing	173	193	(20)
Electronic Technology	107	133	(26)
Health Technology	106	133	(27)
Transportation	51	82	(31)
Retail Trade	98	137	(39)
Distribution Services	131	188	(57)
Health Services	145	209	(64)
Consumer Services	192	292	(100)
Finance	363	473	(110)
Commercial Services	412	524	(112)
Technology Services	429	552	(123)
Total	2839	3543	(704)

Deal Volume

Over the past three months, the sectors that have seen the biggest declines in M&A deal volume relative to the same three month period one year ago have been:

Technology Services (429 vs. 552),
Commercial Services (412 vs. 524),
Finance (363 vs. 473),
Consumer Services (192 vs. 292),
Health Services (145 vs. 209).

Thirteen of the 21 sectors tracked by FactSet Mergerstat posted negative relative losses in deal flow over the last three months compared to the same three months one year prior, for a combined loss of 733 deals.

The Big Deals of June

Topping the list of the largest deals announced in June were:

NextEra Energy, Inc’s agreement to acquire Energy Future Holdings Corp. from Texas Energy Future Holdings LP $18.4 billion
Analog Devices Inc. agreeing to acquire Linear Technology Corp. for $14.4 billion
Danone SA’s deal to acquire The WhiteWave Foods Co. for $10 billion
Oracle Corp’s agreement to acquire NetSuite, Inc. for $8.8 billion
Verizon Communications Inc. agreeing to acquire the Yahoo! Inc.’s operating business for $4.8 billion

US private equity activity decreased in July, down 7.7% from June. There were 96 deals in July compared to 104 in June. Aggregate transaction value also decreased, down by 6.1% to $18.8 billion from June’s $20.0 billion.

FactSet Flashwire Monthly Report

Download the full report for more, including:

Key trend information for the Overall and Middle M&A Markets, such as deal volume, deal value, mega-deals, leading buyers, leading industries, leading sectors, cross-border deals, US regional deals, average P/E, average premiums, payment methods, and much more
Industry reports on the Internet, Telecommunications, Healthcare, Banking, and much more
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