Worldwide, deal activity in 1H 2017 was relatively flat when compared to 1H 2016. Deal value increased slightly by two percent and the number of deals dropped just four percent, according to Thomson Reuters data. In the US, although deal value dropped by 16 percent, the number of deals rose by 17 percent compared to 1H 2016.
Middle market M&A remains robust and the first half of 2017 was the strongest first half for the middle market in the past 10 years. The number of completed deals reached 5,260, a 12% increase from 1H 2016.
The market is bullish due to economic confidence and optimism from what is perceived to be a business-friendly administration. Many are anticipating a tax holiday which would allow companies to repatriate foreign cash which could be used to execute deals. Other deal drivers include the availability of cheap debt due to low interest rates as well as aging baby boomer owners who are looking to sell their companies and retire.
Click on the infographic for a closer look at M&A in 1H 2017.