BDO Horizons 3 - 2018
23 August 2018
The highly-regarded BDO publication Horizons reveals that global mid-market M&A activity in Q2 2018 dropped 6.6%; in other words, a total of 1,782 deals were registered, representing a total deal value of US$ 157.8bn - or a 4.5% drop - compared to Q1 of this year.
When the statistics from Q2 2018 are contrasted with those of Q2 2017, the decrease is even more significant, showing 353 less transactions (-16.5%) and a US$ 22bn decrease in value
(-12.3%). Only when looking back a full five years do we find lower figures: specifically to Q3 2013, which saw 1,658 transactions completed with a value of US$ 134.5bn.
The current cautious behaviour of dealmakers can be explained by concerns about trade wars between the US, the EU and China, which are further adding to existing nervousness about the European immigration crisis and populism, as well as totalitarian tendencies across Europe, notably in Turkey and Poland. The upcoming elections in South America, the Brexit referendum and China’s tightening capital controls are boosting this anxiety too.