The downward trend in deal making accentuated this June with the total number of transactions dropping to its lowest value since August 2010 with 155 deals closed However, this drop can be seen as relative considering the aggregate deal value of $27bn, down from the previous month but more in line with its 12 month average and an indicator of the persisting appetite for deal making, driven this month by the
Media Entertainment industry.
The European TMT M&A market recorded its 4th consecutive month of decline in terms of the number of completed transactions, down 37 since January, although the total deal value jumped this May, thanks in large part to the mega merger of Virgin Media and O 2 to reach $45.2bn, up from $22.7bn in April.
The economic shock of the lockdown had a more profound impact on the M&A industry within the European TMT sector this month Indeed, both the number and the total value of transactions decreased 214 deals were finalised in April, a 12% decrease from the previous month, while the aggregate deal value fell to $22.7bn, albeit close to its 12 month average of $22.9bn.
As the global markets and the economy enters lockdown, the latest data would suggest that deal makers are already feeling the impact The number of transactions fell by 17 in March to 242 the lowest value in the last 12 months On the contrary,
total deal value climbed slightly, to reach $27bn, greatly helped by mega deals in the software and biotech industries and sustained investment from American private equity players.