U.S. M&A Deal Activity And Value Sank in August

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U.S. M&A deal activity decreased in August, down 6.2% with 860 announcements compared to 917 in July. Aggregate M&A spending also decreased; in August, 23.0% less was spent on deals compared to July.

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Over the past three months, only one sector saw an increase in M&A deal activity, relative to the same three-month period one year ago, Finance  with 372 deals vs. 359 a year ago. Only one 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 8/31/17 Deal Count L3M 8/31/16 Deal Count Difference
Finance 372 359 13
Misc. 13 14 (1)
Energy Minerals 42 44 (2)
Government 10 12 (2)
Health Technology 112 115 (3)
Transportation 58 63 (5)
Utilities 75 86 (11)
Consumer Non-Durables 91 103 (12)
Consumer Durables 48 64 (16)
Communications 36 53 (17)
Non-Energy Minerals 61 79 (18)
Process Industries 119 141 (22)
Health Services 145 172 (27)
Electronic Technology 78 110 (32)
Distribution Services 144 178 (34)
Producer Manufacturing 162 200 (38)
Industrial Services 95 145 (50)
Retail Trade 99 152 (53)
Consumer Services 194 250 (56)
Technology Services 431 490 (59)
Commercial Services 395 470 (75)
Total 2,780 3,300 (520)

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: Commercial Services (395 vs. 470), Technology Services (431 vs. 490), Consumer Services (194 vs. 250), Retail Trade (99 vs. 152), and Industrial Services (95 vs. 145). Twenty 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 533 deals.

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

  • Gilead Sciences, Inc. entering an agreement to acquire Kite Pharma, Inc. for $10.3 billion
  • Sempra Energy's agreement to acquire Energy Future Holdings Corp. for $9.5 billion
  • A private group led by Energy Capital Partners LLC, Access Industries, Inc. and Canada Pension Plan Investment Board agreeing to acquire Calpine Corp. for $5.5 billion
  • Invitation Homes, Inc.'s deal to acquire Starwood Waypoint Homes for $4.3 billion
  • Silver Run Acquisition Corp. II agreeing to acquire Alta Mesa Holdings LP, a portfolio company of Highbridge Principal Strategies Growth Equity, for $3.4 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

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