The number of mergers and acquisitions during Q4 2010 fell by 20.6 per cent compared to Q4 2009, bringing the volume of deals for the whole of 2010 to 4,240 – 4.5 per cent fewer than the total number of deals in 2009, according to Experian.
The company’s latest mergers and acquisitions (M&A) and equity capital market (ECM) data has also revealed that the value of deals during Q4 2010 fell – down 17.7 per cent compared to Q4 2009. The total value of deals for the year saw a decline of 16.8 per cent compared to 2009.
During Q4 2010, the UK saw a 12.5 per cent decrease in the number of UK M&A and ECM transactions announced, compared to Q3 2010 (from 1,050 deals to 919 deals), and a 18.43 per cent fall on the value of transactions to £52.912 billion.
Compared to Q4 2009, the UK also saw a 20.6 per cent fall in volume, from 1,158 and a 17.7 per cent fall in value, from GBP64.287billion.
The most improved region in the UK was East Anglia with a percentage increase of 31.4per cent in deals since last quarter, while the worst performing region was Wales where deal activity dropped by 44.1 per cent.
Europe saw a 20.01 per cent decrease in European M&A and ECM transactions announced during Q4 2010 with only 2,103 deals compared to 2,629 transactions in Q3 2010 and a 11.44 per cent fall on the €208.429 billion recorded in Q3 2010 to €184.586 billion worth of transactions announced in Europe in Q4 2010.
Compared to Q4 2009, Europe also saw the volume of deals fall by 28.3 per cent from 2,932 to 2,103 deals. The value of deals fell from EUR232.499 billion in Q4 2009 to €184.586 billion – down 20.6 per cent.
The majority of the UK’s deals during Q4 2010 were with the USA, followed by Australia.
For 2010 as a whole, Europe’s deal volumes saw a 6.68 per cent decline, whilst deal values dropped by 10.7 per cent compared to 2009.
The final year results for the USA revealed a decrease in volume of 2.7 per cent and an increase in value of 1.4 per cent when comparing the figures with 2009.
Asia fared much better with a 6.9 per cent increase in volume for 2010 as a whole and a significant 15.6 per cent increase in value over the same time frame.
“While overall deal volumes have decreased in Q4 and year-on-year from 2009, the overall trend since Q3 2008 has been relatively flat," says Wendy Smith, Business Development Manager at Experian Corpfin. "It remains to be seen if deal volumes have found a new level at which they will remain or whether the decline will continue or indeed whether we will see an upturn in 2011.”
