AI Magazine Issue 3 2018

Acquisition International - Issue 3 2018 61 Number and Aggregate Value (mil USD) of Real Estate Deals Globally: 2006-2018 YTD (as at 25th February 2018) Deal monthly value (Announced date) Number of deals Aggregate deal value (mil $) February 2018 417 13,648 January 2018 656 18,335 December 2017 487 32,282 November 2017 483 14,792 October 2017 441 14,675 September 2017 405 7,871 August 2017 458 20,242 July 2017 480 13,285 June 2017 516 26,488 May 2017 486 14,957 April 2017 368 8,147 March 2017 511 13,748 February 2017 507 12,598 January 2017 677 6,628 December 2016 496 6,823 November 2016 487 17,389 October 2016 440 4,264 September 2016 367 12,660 August 2016 417 12,211 July 2016 407 10,874 World region (target) 2014 2015 2016 2017 2018 North America 1,927 2,484 1,971 2,058 327 Far East and Central Asia 850 1,760 1,910 1,836 239 Western Europe 1,915 1,998 1,823 1,917 213 Africa 127 100 115 103 19 South and Central America 102 122 97 115 14 Oceania 77 77 96 116 11 Middle East 77 83 94 101 10 Eastern Europe 142 177 156 130 8 Number of Private Equity Deals Globally: 2006-2018 YTD (as at 25th February 2018) Round-up of March The value of private equity dealmaking reached its highest level in a decade in 2017, according to Zephyr, the M&A database published by Bureau van Dijk. There were 6,380 deals worth a combined USD 621,745 million announced over the 12-month period, compared to 6,266 deals worth USD 456,859 million in 2016. While volume was the second largest on record, behind the 6,802 deals announced in 2015, value was the highest recorded since 2007, when USD 862,331 million was injected across 5,582 deals. 2018 has started promisingly; so far there have been 842 deals worth a combined USD 98,672 million announced. At the time of writing, there are still three days left until the end of February, and if private equity activity continues on this trajectory in the coming months, volume could be in line with heights recorded in recent years. While the year also started well in terms of value, a single large transaction could have a significant impact on dealmaking levels over the 12 months, with a large portion of yearly value usually attributable to a relatively small number of big transactions. However, value is unlikely to plumb the same depths as a number of relatively recent years; the opening two months of 2018 already represents 65 per cent of the total USD 151,155 million notched up in 2009. Almost 50 per cent of total private equity investment in 2018 to date can be attributed to deals featuring North American targets; the region has featured in 327 deals worth USD 48,387 million in the year so far. Western Europe and Far East and Central Asia have also recorded significant values, of USD 24,155 million and USD 18,959 million, respectively. One private equity deal which stood out accounts for 20 per cent of total value in 2018 and 41 per cent of investment in North America as the Blackstone Group and Canada Pension Plan Investment Board agreed to pay USD 20,000 million for a 55 per cent stake in Thomson Reuters’ financial and risk business. To sum up, it is still too early to get an indication of how 2018 is likely to shape up in terms of private equity dealmaking. However, a large number of sizable transactions have already been signed off in the year to date and if the remaining ten months continue on the same trajectory, 2018 could prove to be an impressive year for PE investment. March – Private Equity Number and Aggregate Value (mil USD) of Real Estate Deals Globally by Target Sector: 2006-2018 YTD (as at 25th February 2018) Number and Aggregate Value (mil USD) of Private Equity Deals Globally: 2006-2018 YTD (as at 25th February 2018) Deal yearly value (Announced date) Number of deals Aggregate deal value (mil $) 2018 842 98,672 2017 6,380 621,745 2016 6,266 456,859 2015 6,802 559,408 2014 5,213 390,217 2013 4,465 352,756 Zephus classification (target) Number of deals Aggregate deal value (mil $) Property Services 28,082 1,396,400 Construction 14,011 261,377 Banking, Insurance & Financial Services 2,046 130,413 Transport, Freight, Storage & Travel Services 4,984 118,206 Personal, Leisure & Business Services 1,977 88,177 Hotels and Restaurants 444 45,396 Wholesaling 400 38,976 Computer, IT and Internet services 291 37,701 Utilities 152 24,966 Retailing 248 18,037 Mining & Extraction 69 17,040 Chemicals, Petroleum, Rubber & Plastic 58 16,837 Industrial, Electric & Electronic Machinery 115 9,645 Wood, Furniture & Paper Manufacturing 79 9,341 Public Administration, Education, Health Social Services 165 9,171