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Writer's pictureBilly Amberg

Middle Market Pulse - October

In the ever-evolving landscape of private equity, Europe has witnessed a significant shift in deal dynamics. The escalating costs of leverage have led to a surge in bolt-on acquisitions, dominating both the buyout value and volume in the region. According to a PitchBook (a database of private equity transactions), this year has seen 2,228 deals amounting to €225.8 billion (approximately $238.6 billion), making up 67.4% of deal count and 55% of deal value. Although these figures are lower than the previous year's total of 3,857 deals worth €282.6 billion, they mark a substantial increase in deal share. Among the notable transactions was AviLease's acquisition of Standard Chartered's aircraft leasing division for €3.6 billion, and Asda's purchase of EG Group's UK and Ireland fuel forecourt business for £2.3 billion, showcasing the trend of significant bolt-on acquisitions in Europe.


A recent late September article by Reuters reports that despite a relatively stagnant third quarter, the United States, as the world's largest investment banking market, experienced a rebound in deal volume, giving hope for a sustained recovery. The total value of global M&A transactions slightly decreased to $717.4 billion during the September quarter, compared to $738.1 billion the previous year. The US market contributed to a significant portion of the global M&A activity, offsetting declines in Europe and Asia Pacific. Cash-flush buyers in the US demonstrated resilience in the face of adversities such as high interest rates, increased antitrust scrutiny, and the looming threat of a federal government shutdown, driving a 35% increase in deal values compared to the same period last year.

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