AI Magazine Issue 2 2017

Acquisition International - February 2017 67 Number and Aggregate Value (mil USD) of Support Services Deals Globally: 2006-2017 YTD (as at 31 January 2017) Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) H1 2017 860 24,296 H2 2016 5,567 176,807 H1 2016 6,126 202,102 H2 2015 6,836 215,554 H1 2015 6,749 194,346 H2 2014 6,226 133,003 H1 2014 5,802 119,342 H2 2013 5,075 83,181 H1 2013 4,318 79,011 H2 2012 4,073 97,817 H1 2012 3,533 67,024 H2 2011 3,125 98,251 H1 2011 2,737 81,061 H2 2010 2,490 75,861 H1 2010 2,422 67,055 H2 2009 2,073 98,242 H1 2009 1,862 38,725 H2 2008 1,824 72,570 H1 2008 2,019 79,417 H2 2007 2,115 101,883 H1 2007 2,324 112,958 World region (target) 2013 2014 2015 2016 2017 North America 4,663 5,587 5,285 3,705 289 Western Europe 2,070 2,724 3,268 3,294 242 Far East and Central Asia 975 1,722 3,318 3,090 229 Eastern Europe 723 935 710 846 62 South and Central America 359 381 294 193 15 Oceania 388 425 437 353 14 Middle East 138 141 172 136 7 Africa 63 108 96 90 3 Number of Support Services Deals by Region: 2006 - 2016 YTD (as at 31 January 2017) Sector Talk In keeping with the pattern detected across global M&A activity for 2016, the year was slightly disappointing in terms of deal making in the healthcare sector; both volume and value declined over the 12 months but were more impressive when compared with 2014 and preceding years. According to Zephyr, the M&A database published by Bureau van Dijk, there were 1,918 deals worth $44,283 million announced in 2016, compared to the $68,586 million invested across 1,974 transactions in 2015. 2017 has started promisingly; in January, there were 165 deals worth $4,473 million featuring targets in the healthcare sector. If results continue on this trajectory for the rest of this year both volume and value should manage to surpass 2016’s levels. However, it remains to be seen whether 2015’s impressive levels can be achieved again and this will depend on an upturn in deal making over the coming months. The last time aggregate value surpassed the $68,586 million invested in 2015 was in 2006, when transactions worth $74,341 million were signed off. North America topped the world region rankings by both volume and value by a considerable distance in January; in all the region was targeted in 86 deals worth a combined $4,058 million. This placed it ahead of Western Europe, which notched up deal making of $145 million across 35 deals, on both fronts. The Far East and Central Asia placed third with 28 deals worth $139 million. A considerable portion of the $4,058 million invested in North America over the month is attributable to a single deal as US surgery centres operator Surgical Care Affiliates was acquired by UnitedHealth Group for $3,600 million. This deal was worth significantly more than the second- placed transaction; a $300 million purchase of an 80% stake in MIVIP Healthcare Holdings by China Robotic Surgery Group. In conclusion, January was a promising month for deal making in the healthcare sector, largely due to a single transaction. If more deals on this scale are announced in the coming months activity levels could start to move closer to those recorded in 2015. M&A in the Healthcare Sector Number and Aggregate Value (Mil USD) of Support Services Deals Globally by Target Sector: 2006 - 2016 to date (as at 31 January 2017) Number and Aggregate Value (Mil USD) of Support Services Deals Globally by Deal Type: 2006-2016 to date (as at 31 January 2017) Deal type Number of deals Aggregate deal value (mil $) Acquisition 25,240 1,185,886 Minority stake 47,428 714,374 Institutional buy-out 1,669 251,877 Capital increase 7,158 250,086 Demerger 62 6,992 Management buy-out 424 6,640 Zephus classification (target) Number of deals Aggregate deal value (mil $) Computer, IT and Internet services 55,665 1,209,992 Mining & Extraction 5,442 602,554 Transport, Freight, Storage & Travel Services 13,658 541,196 Personal, Leisure & Business Services 13,646 499,181 Banking, Insurance & Financial Services 3,854 106,622 Wholesaling 1,436 100,834 Chemicals, Petroleum, Rubber & Plastic 393 95,056 Utilities 1,002 87,028 Industrial, Electric & Electronic Machinery 1,143 72,842 Retailing 972 71,363 Communications 614 48,411 Hotels and Restaurants 873 40,218 Public Administration, Education, Health Social Services 1,065 38,048 Property Services 476 31,028 Construction 563 22,919