2014 Remains on Pace for Strong Volume
- commentary by Pat Dolan
Delancey Street Partners & ACG Marketing Committee Member
Despite Recent Public Market Volatility, M&A and Capital Markets Volume Remains Strong
Year-to-date total transaction volume in 2014 suggests confidence is high among business owners, investors, executives and Board members. The desire to capitalize on this environment is evidenced through a 19.2% increase in overall transaction volume through the first three Qs of 2014 relative to the first three Qs of 2013. 2014 has been marked by steady, strong activity in both M&A and capital markets activity (see charts below). Although overall quarterly transaction value was slightly down in Q3 2014 relative to the first two quarters of the year, total transaction value of $45.6 billion in Q3 2014 remains at a healthy level relative to the quarterly total transaction value levels during the prior three years.
For those who attended M&A East in October, the overall tone at the conference suggests it remains a favorable environment to be a seller of a business, with a distinctive scarcity premium in the market for quality companies. For business owners, the ingredients remain in place to capitalize on a seller-friendly M&A market: i) strategic acquiror’s need for growth; ii) healthy corporate balance sheets; iii) attractive financing markets; and iv) considerable "dry powder" available from financial sponsors. Many strategic acquirors and financial sponsors speak of a highly competitive M&A auction environment where getting invited to a management presentation following initial indications of interest is a significant challenge. This supply/demand imbalance is not expected to be resolved in the near term.
From an M&A deal volume perspective, activity has been generally "up and to the right" since the bottom in Q1 2009. All industry sectors remain active, with financials and information technology the most active sectors. Activity is strong in the middle market and the large cap market, which signals a higher level of confidence in boardrooms to get deals done. Despite this overall positive tone, recent market volatility caused by various headlines around the globe warrants monitoring as 2014 comes to a close.
Scroll down to read more about our 25 member firms' Q3 2014 transactions as well as their new hires and promotions.
Source: S&P Capital IQ
For a listing of all historical featured deals please go to the LIBRARY tab.
Showcasing ACG Member Deals
Quarterly Featured Deal...
Dassault Systèmes buys Quintiq