M&A Spending And Value Down In July

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M&A Spending And Value Down In July

U.S. M&A deal activity decreased in July, down 8.3% with 897 announcements compared to 978 in June. Aggregate M&A spending slightly decreased. In July, 0.6% less was spent on deals compared to June.

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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: Consumer Services (215 vs. 206), Energy Minerals (45 vs. 38), Transportation (63 vs. 58), Non-Energy Minerals (69 vs. 64), and Distribution Services (159 vs. 156). 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 7/31/17 Deal Count L3M 7/31/16 Deal Count Difference
 Consumer Services 215 206 9
Enery Minerals 45 38 7
Transportation 63 58 5
Non-Energy Minerals 69 64 5
Distribtuion Services 159 156 3
Utilities 78 76 2
Misc. 12 12 0
Government 8 8 0
Retail Trade 114 114 0
Electronic Technology 89 92 (3)
Finance 386 390 (4)
Consumer Durables 52 60 (8)
Health Technology 104 117 (13)
Communications 38 52 (14)
Health Services 148 165 (17)
Consumer Non-Durables 79 100 (21)
Producer Manufacturing 165 194 (29)
Industrial Services 114 147 (33)
Process Industries 108 141 (33)
Commerical Services 405 444 (39)
Technology Services 443 483 (40)
Total 2,894 3,117 (223)

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 (443 vs. 483), Commercial Services (405 vs. 444), Process Industries (108 vs. 141), Industrial Services (114 vs. 147), and Producer Manufacturing (165 vs. 194). Twelve 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 254 deals.

Topping the list of the largest deals announced in July are

  • Discovery Communications, Inc. signing an agreement to acquire Scripps Networks Interactive, Inc. for $11.7 billion
  • Vantiv, Inc. agreeing to acquire Worldpay Group Plc for $9.8 billion
  • Elliott Management Corp.’s proposal to acquire Energy Future Holdings Corp. for a reported $9.3 billion
  • Crown Castle International Corp.’s agreement to acquire Light Tower Fiber LLC for approximately $7.1 billion
  • Westar Energy, Inc.’s deal to acquire Great Plains Energy, Inc. for $6.9 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
  • Special reports on technology, the public and private M&A markets, cancellation fees, industry activity, etc.
  • Leading financial and legal advisor rankings

Article By FactSet Insight

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