AI Magazine Issue 3 2017

Acquisition International - March 2017 73 Number and Aggregate Value (mil $) of Real Estate Deals Globally: 2006-2017 YTD (as at 16 February 2017) Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) H1 2017 938 12,312 H2 2016 2,491 73,735 H1 2016 2,831 64,427 H2 2015 2,688 72,083 H1 2015 2,463 88,903 H2 2014 2,130 70,071 H1 2014 2,114 67,364 H2 2013 2,158 81,113 H1 2013 1,713 56,274 H2 2012 1,638 41,036 H1 2012 1,532 44,073 H2 2011 1,359 22,624 H1 2011 1,237 45,230 H2 2010 1,250 27,748 H1 2010 1,307 33,088 H2 2009 1,097 53,045 H1 2009 972 33,248 H2 2008 850 33,328 H1 2008 765 33,221 H2 2007 872 77,775 H1 2007 1,054 207,609 World region (target) 2013 2014 2015 2016 2017 North America 1,470 1,768 2,547 2,789 671 Western Europe 1,050 877 1,060 940 102 Eastern Europe 743 914 739 839 76 Far East and Central Asia 283 404 541 562 68 Africa 52 93 79 56 9 South and Central America 49 39 49 41 5 Oceania 197 122 119 91 5 Middle East 28 27 13 9 1 Number of Real Estate Deals by Region: 2006 - 2017 YTD (as at 16 February 2017) Sector Talk 2016 registered a decline on 2015 in terms of global private equity activity, according to Zephyr, the M&A database published by Bureau van Dijk. There were 5,682 deals worth $435,449 million announced over the course of the year, compared to 6,796 worth $592,140 million in 2015. This means PE activity was in keeping with the overall M&A trend for 2016, which despite the year-on- year decline, still represented an improvement on every year since 2007 in terms of value. 2017 has started slowly; thus, far there have been 662 private equity transactions worth a combined $44,495 million. At the time of writing we are half way through February, meaning that if deals continue to be signed off at this rate throughout the rest of the year we are likely to see a second consecutive yearly decline in volume. Value is difficult to predict as a single large transaction could have a significant impact on deal making levels over the 12 months. In years with impressive value levels a considerable portion of the investment is usually attributable to a relatively small number of big transactions. Despite the sluggish start to the year, we are unlikely to see values return to the same levels as 2009, when activity hit its nadir. The $44,495 million-worth of deal making announced in the first six weeks of 2017 already represents almost a third of the $136,223 million invested in the whole of 2009. North America and Western Europe have accounted for the lion’s share of PE investment in 2017 to date, with the regions attracting value of $16,856 million and $16,726 million, respectively. Both regions were each worth almost double the Far East and Central Asia, which was targeted in deals worth $8,795 million. The same three regions led the way by volume, with 217, 209 and 179 deals, respectively. To sum up, it is still very early days in terms of getting an indication of how 2017 is likely to shape up in terms of PE deal making, but it is safe to say the year has gotten off to a less than blistering start. Nevertheless, the fact that plenty of deals are still being signed off is encouraging and will give many individuals hope that this year can reverse the decline recorded in 2016. Private Equity M&A Trends Number and Aggregate Value (Mil USD) of Real Estate Deals Globally by Target Sector: 2006 - 2017 to date (as at 16 February 2017) Number and Aggregate Value (Mil USD) of Real Estate Deals Globally by Deal Type: 2006-2017 to date (as at 16 February 2017) Deal type Number of deals Aggregate deal value (mil $) Acquisition 10,967 649,033 Minority stake 20,401 300,278 Capital increase 3,536 296,217 Institutional buy-out 237 162,162 Management buy-out 138 4,604 MBI / MBO 3 676 Zephus classification (target) Number of deals Aggregate deal value (mil $) Property Services 24,777 1,249,338 Construction 12,239 249,929 Banking, Insurance & Financial Services 1,875 103,820 Personal, Leisure & Business Services 1,841 102,124 Transport, Freight, Storage & Travel Services 4,010 102,078 Hotels and Restau- rants 380 44,359 Wholesaling 363 39,241 Computer, IT and Internet services 249 34,874 Utilities 146 24,374 Retailing 250 18,711 Mining & Extraction 64 16,234 Chemicals, Petro- leum, Rubber & Plastic 63 15,902 Industrial, Electric & Electronic Machinery 100 9,106 Wood, Furniture & Paper Manufacturing 67 9,026 Public Administra- tion, Education, Health Social Services 147 8,890 Communications 43 4,844