News release

 

Contact:
Benjamin Gardner
Public Relations Executive,
Information Solutions
+44 (0)115 992 2142 Tel
benjamin.gardner@uk.experian.com Email

Experian sees sharp decline in M&A activity

But key advisors maintain deal momentum and deal values increase in quarter two

Nottingham, UK, 2 September 2008 –Experian®, the global information services company, today released figures that show a sharp decline in mergers, acquisitions and IPO activity in the first six months of the year, as issues with global financial capital markets finally catch up with deal activity.

According to Corpfin, an Experian company specialising in the provision of corporate financial information, 2,972 deals were completed in the first six months of 2008, representing a decline of 10.4% compared with the 3,316 recorded in the first half of 2007. The total value of deals across the UK and Ireland fell to £126billion in the first six months of 2008, compared with £281billion in the first half of 2007.

The quarterly trend hints at a possible upturn in the value of deal activity. Although the number of deals conducted in the UK fell by 10% from 1,565 in quarter one of 2008 to 1,407 in quarter two, the value of deals actually increased by 16%, from £58.2billion to £67.7billion.

The regional picture

Of the eleven regions covered, only Yorkshire (up 9%), the South West (up 8%) and the North West (up 1.25%) regions saw a year-on-year increase in the number of corporate deals completed. However, this did not correspond to an increase in deal values, which slowed by 57% in the South West, 65% in Yorkshire (down 65%) and 86% in the North West.

London based advisors witnessed the most significant regional year-on-year decline. 754 transactions were completed in the first half of 2008, a decline of 36% on the 189 deals completed in the first half of 2007. This represents a 52% fall in total deal value from £124billion to £59billion.

The North East suffered the greatest year-on-year decline, with the value of deals completed decreasing by 86% from £4.9billion to £690million.

Wales was the only region to record a year-on-year increase in deal value (up 258%). However, this was largely due to the acquisition of Convatec, a medical supplies firm, worth £2billion. 

Region

Number of Deals Jan – June 2007

Number of Deals Jan – Jun 2008

Number of Deals % Change

Yorkshire

221

241

+9%

South West

337

364

+8%

North West

400

405

+1%

Scotland

275

267

-3%

Wales

102

85

-17%

East Anglia

178

147

-17%

Midlands

424

346

-18%

North East

142

114

-20%

ROI & NI

225

165

-27%

South East

521

352

-32%

London

1,189

754

-36%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Region

Value of Deals Jan - Jun 2007 (m£)

Value of Deals Jan - Jun 2008 (m£)

Value of deals % change

Wales

774

2,772

+258%

South East

38,256

24,733

-35%

ROI & NI

6,674

4,246

-36%

Scotland

58,442

34,877

-40%

London

123,850

59,037

-52%

South West

32,885

14,235

-57%

North West

9,815

3,580

-64%

Yorkshire

4,493

1,580

-65%

East Anglia

3,389

1,055

-69%

Midlands

22,369

4,860

-78%

North East

4,874

690

-86%

 
















 

Financial and legal advisors

Corpfin’s insight into deal activity has enabled it to identify the busiest financial and legal advisors during quarter two, 2008. During this period, the top 10 UK financial advisors recorded 215 citations between them. The busiest UK financial advisor, with 28 citations, was Ernst and Young Transaction Advisory Services. Grant Thornton Corporate Finance was a close second, with 27 cited deals. Pinsent Masons was the busiest legal advisor, with 29 cited deals. The following tables display the top 10 legal and financial advisors in the UK & Ireland during quarter two, 2008:

 

Rank

Financial advisor

Cited deals

1

Ernst & Young Transactions Advisory Services

28

2

Grant Thornton Corporate Finance

27

3

Rothschild

24

4

Deloitte

24

5

BDO Stoy Hayward Corporate Finance LLP

24

6

KPMG Corporate Finance

21

7

Pricewaterhousecoopers Corporate Finance

20

8

UBS Investment Bank

16

9

JP Morgan Chase & Co

16

10

Baker Tilly Corporate Finance

15

 

Rank

Legal Advisor

Cited deals

1

Pinsent Masons

29

2

DLA Piper

25

3

Eversheds

22

4

Olswang

21

5

Norton Rose

20

6

Jones Day

18

7

Clifford Chance

17

8

Allen & Overy

17

9

Halliwells

17

10

Linklaters

16


Brian Rarity, Strategic Consultant, Corpfin, commented: “The level of M&A activity is a key barometer of economic health, with strong, buoyant economies generally seeing higher levels of deal making. While the credit crunch has deterred many organisations from doing deals and has led to an overall fall in deal numbers, advisors are still involved in transactions in all value bands and commercial sectors.

“The fact that quarter two 2008 saw an increase in deal values compared to quarter one 2008 provides hope for the future. There are still opportunities out there, they are just that little bit harder to find.”

 

This press release can be downloaded from http://press.experian.com.

ENDS

 

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