BDO Horizons: A glimpse of the 2017 M&A activity and an analysis of what lies ahead
14 March 2018
Original content provided by BDO Belgium
2017 was characterised by uncertainty caused by numerous political and economic events. A year ago, the outcome of the presidential elections in the United States, France and Germany as well as their impact on the global M&A activity were quite unsure. Due to these uncertainties, 2017 recorded a weaker performance on a global level compared to the three previous years, both in terms of deal value and volume.
The Benelux region directly suffered from the populist fears in The Netherlands and France and was also impacted by the doubts resulting from the German’s elections. As a consequence, the final quarter of 2017 showed a considerable decrease in deal volume and deal value. With the benefit of the hindsight, part of this decline can be explained by a significant reduction of private equity deal volume and value. Despite the decline in Q4, Industrial & Chemicals, Technology, Media & Telecom and Business Services were the most active sectors in the Benelux region with 23 deals out of 27 (85%) in Q4 2017, with top 10 deals ranging from USD 52m to USD 226m.
Today, the uncertainties decreased and some level of predictability has returned. Several macroeconomic and financial deal drivers should support M&A activity in 2018 and reduce the held-back deals of 2017. Moreover, the historically low financing costs should still stimulate the M&A activity, while it remains low. The combination of those factors indicates a recovery of the M&A market around the globe.
Please find the complete BDO Horizons on the BDO Corporate Finance webpage and for more information, please contact Geert Costers.