On the up: 9% rise in business sales for 2017
Dealmaking in the USA and Europe recovered sharply in the first three months of 2017, new figures show.
Thomson Reuters recorded 10,433 transactions worldwide in Q1, a 9% rise on the same period a year ago.
North America remains the world’s most active market, with deal volume up 5% in Q1 – led by a spike in energy and healthcare deals. Meanwhile US acquisitions of European companies helped push cross-border M&A activity to a 10-year high.
China also saw more than 3000 business change hands in Q1, although Chinese overseas acquisitions fell 70% on a year ago.
The UK is still the world’s third-biggest market, where acquisition and investment activity has surged 22%. Conversely, continental deal-making was up 4% as forthcoming elections in France and Germany temporarily subdue the usual appetite for deals.
The key takeaway for business owner is that political events will continue to have little bearing on market appetite to buy and sell companies, especially while underlying funding conditions remain benign.
This is reflected in recent BCMS deals, which demonstrate Brexit hasn’t affected appetite from EU-based acquirers from buying UK businesses. Recent BCMS-led crossborder acquisitions into the UK include Swedish industrial giant Indutrade buying hospital equipment supplier Sunflower Medical, Ireland’s Fexco acquiring foreign exchange chain CAC, and the sale of water purification distributor UVO3 to Pollet Water of Belgium.