AI Issue 5 2018

Acquisition International - Issue 5 2018 99 Number and Aggregate Value (mil USD) of Private Equity Deals Globally: 2006-2018 YTD (as at 24 April 2018) Deal quarterly value (Announced date) Number of deals Aggregate deal value (mil $) Q2 2018 355 36,550 Q1 2018 1,564 155,934 Q4 2017 1,628 161,989 Q3 2017 1,631 172,740 Q2 2017 1,613 176,036 Q1 2017 1,641 116,308 Q4 2016 1,582 123,214 Q3 2016 1,540 120,180 Q2 2016 1,602 135,373 Q1 2016 1,513 78,148 Q4 2015 1,658 186,832 Q3 2015 1,800 130,792 Q2 2015 1,918 125,093 Q1 2015 1,387 115,071 Q4 2014 1,414 110,170 Q3 2014 1,313 86,562 Q2 2014 1,271 91,423 Q1 2014 1,250 102,699 Q4 2013 1,282 85,246 Q3 2013 1,122 103,070 World region (target) Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 North America 546 531 511 558 130 Far East and Central Asia 465 469 466 445 113 Western Europe 459 500 495 432 88 Oceania 32 30 32 22 9 South and Central America 34 27 28 28 8 Middle East 24 30 27 22 4 Africa 27 24 27 31 2 Eastern Europe 29 16 39 25 1 Number of Private Equity Deals by Region: 2006 - 2018 YTD (as at 24 April 2018) Bureau van Dijk 2018 has started positively in terms of the volume and value of mergers and acquisitions (M&A) deals featuring targets in the financial services sector. According to Zephyr, the M&A database published by Bureau van Dijk, there were 3,213 deals worth a combined USD 282,727 million announced during the first quarter of the year, representing the highest quarterly value recorded since Q2 2009. While Q2 2018 is just getting underway, there have already been a sizeable amount of transactions signed off in the financial services sector, as 674 deals worth USD 24,386 million have been recorded in the opening 25 days of the quarter. With Q1 being the highest recorded value in the industry since Q2 2009 (USD 308,920 million), there are many that will be hoping for further growth in the coming quarters, suggesting 2018 could be a record year for investment in financial services. North American companies are leading the way by both volume and value in 2018, having featured in 1,314 deals worth an aggregate USD 105,746 million, already more than half of the value injected in the region in the whole of 2017 (USD 199,778 million) and exceeding the USD 96,043 million invested in 2013, despite only being one quarter into the year. In terms of volume, companies based in Western Europe are close on the tails of North America, with 1,113 deals in 2018 to date, while the region’s nearest competitor by value is Far East and Central Asia, with USD 79,534 million. Acquisitions are proving to be the most popular way of entering the financial services market, with 1,189 such deals worth USD 182,246 million announced globally in the year to date. Capital increases have also been popular in the opening four months of 2018, with USD 69,829 million raised across 490 deals. In conclusion, 2018 is well and truly underway for the financial services industry, with a significant number of deals having been recorded. Q1 is well ahead of any other recent quarter in terms of investment levels in recent years and now it is a question of whether the impressive start can be maintained in the coming months. Financial Services Number and Aggregate Value (Mil USD) of Private Equity Deals Globally by Target Sector: 2018 YTD (as at 24 April 2018) Number and Aggregate Value (Mil USD) of Private Equity Deals Globally by Deal Type: 2006-2018 YTD (as at 24 April 2018) Deal type Number of deals Aggregate deal value (mil $) Institutional buy-out 19,237 3,506,110 Minority stake 38,749 1,121,504 Acquisition 2,774 658,884 Management buy-out 1,607 63,287 Capital increase 733 58,589 Management buy-in 205 3,547 Zephus classification (target) Number of deals Aggregate deal value (mil $) Computer, IT and Internet services 848 51,982 Personal, Leisure & Business Services 316 41,374 Industrial, Electric & Electronic Machinery 229 21,497 Chemicals, Petro- leum, Rubber & Plastic 59 20,887 Utilities 51 17,505 Banking, Insurance & Financial Services 116 16,880 Wholesaling 77 14,633 Transport, Freight, Storage & Travel Services 52 14,325 Communications 22 14,122 Mining & Extraction 18 13,692 Hotels and Restau- rants 47 10,670 Public Administration, Education, Health Social Services 97 7,453 Retailing 92 6,126 Construction 45 5,886 Food & Tobacco Manufacturing 44 5,306