Friday 20 April 2018

M&As reach their second highest level for four years

Peter Flanagan

Peter Flanagan

THE second quarter of this year was the second busiest period for mergers and acquisitions in nearly four years, new figures show.

The NCB Corporate Finance mergers and acquisitions (M&A) tracker survey showed 60 deals were completed between April and June. Since the end of 2008, only the last three months of 2011 have been busier.

The level of deals was up 30pc year-on-year, while the value of business in the sector was up 43pc at €540m.

The numbers, however, were inflated somewhat by 16 small acquisitions carried out by construction giant CRH during the three-month period.

In value terms, the deals were nearly a third lower than the €792m spent in the first quarter of this year.

NCB's director of corporate finance, Jonathan Simmons, said the period had been a strong one for the M&A business.

"Sectors that have experienced the most activity in the past 24 months, namely financial services, food services, and IT/telecoms, continued to see high levels of activity and we expect this to continue for the remainder of the year," he said.

The M&A market is likely to be dominated by trade buyers in the coming months, as well as further distressed sales from receiverships.

Irish companies were active overseas, completing 28 transactions. This included the 16 CRH purchases worth a total of €240m.

Irish Independent

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