After a strong 2017, M&A activity got off to a sluggish start in the first quarter of this year. Across North America and Europe, 4,867 deals were completed in 1Q 2018, totaling $616.7 billion in value—18% and 25% YoY decreases, respectively. Though completed deal count slid substantially, an additional 973 deals totaling an estimated $451.3 billion have been announced but have yet to close. On that account, combined with the knock-on effects of corporate tax cuts in the US and a relatively stable European economy, we expect completed deal flow to increase through the remainder of the year.
<p>M&A
Report
1Q 2018
Contents
Key Takeaways
2
Overview
3
Spotlight: Healthcare
5
Deals by Region & Size
7
Spotlight: Divestitures
8
Credits & Contact
PitchBook Data, Inc.
John Gabbert Founder, CEO
Adley Bowden Vice President,
Market Development & Analysis
Content
Dylan Cox Senior Analyst, PE
Darren Klees Data Analyst
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methodologies.
$616.7B
total value across
North America and
Europe in 1Q
Key takeaways from the analysts
After a strong 2017, M&A activity
got off to a sluggish start in the first
quarter of this year. Across North
America and Europe, 4,867 deals were
completed in 1Q 2018, totaling $616.7
billion in value18% and 25% year-
over-year decreases, respectively.
Though the pace of completed
corporate divestitures was rather
slow in 1Q 2018, 463 divestitures
totaling $149.0 billion have been
announced but have yet to close. We
expect divestiture activity to increase
during the remainder of the year, as
companies look to slim down after the
recent buying binge.
B2C transactions accounted for just
15.9% of deal flow in 1Q 2018. Interest
in traditional B2C assets has dwindled
as tech-focused firms continue to
make their mark on consumer-facing
businesses. Further, businesses that
were once thought of as traditional
B2C, such as retail, are now created as
tech-focused ecommerce firms.
$149.0B
total value of
announced divestitures
15.9%
of total deal flow in
B2C, a slow start
relative to prior full-
year tallies
PITCHBOOK 1Q 2018 M&A REPORT
2
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$0
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018*
Deal value ($B)
Es mated deal value ($B)
Deal count
Es mated # of deals closed
21, 119
After a strong 2017, M&A activity
got off to a sluggish start in the first
quart