M&A and PE deal value rises marginally in H1 of 2016

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Published: July 19, 2016 6:21:51 AM

Combined deal value of private equity and M&A transactions has risen marginally to $21.8 billion from $21.1 billion in the first six months of 2016 compared...

Combined deal value of private equity and M&A transactions has risen marginally to $21.8 billion from $21.1 billion in the first six months of 2016 compared to the same period last year. Data compiled by Grant Thornton shows that the total number of transactions during this period have risen to 750 deals from 738 deals driven by both domestic and outbound transactions. While M&A transactions saw a 12% increase in the deal values amounting to $15.7 billion despite a 5% drop in deal volumes, the number of private equity deals (PE) deals have seen consistent growth in volumes.

The first half of 2016 saw 491 PE deals in total worth $6.1 billion but investment values declined by 13% compared to last year, underling reduction of average ticket size in PE transactions. Early stage funding rounds dominated the investment cycle with Venture capital investments contributing 90% of the deal value.

Top performing M&A sectors included energy & natural resources, manufacturing and IT & ITeS accounting for 58% for total M&A values. In volume terms start-ups, IT & ITeS and Pharma led the deals in M&A space. The top PE sectors includes IT & ITES (22%) which continues to be a sector of interest followed by start-ups (20%), banking and financial services (13%) in terms of deal values.

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