Business Irish

Monday 20 January 2020

Steep drop in value of corporate deals

Donal O'Donovan

Donal O'Donovan

New data shows a sharp drop in the number and value of corporate deals in the first nine months of the year.

The value of mergers & acquisitions (M&A) and equity capital markets (ECM) deals involving an Irish company dropped 11pc to €22.15bn in the period. The steep drop was despite the current year's tally being boosted by the €6.3bn takeover of Elan by Perrigo, according to research from financial data firm Experian.

The total number of Irish M&A and ECM deals in the period was down even more sharply – dropping to 149 from 237 transactions during January to September in 2012. Irish deals account for just over 2pc of European deals, and close to 4pc of European deal value.

Of the deals done here, almost half of takeover transactions are of manufacturing businesses. The next most active sector is in wholesale, retail & repair.

By deal value, pharmaceuticals is the dominant sector – thanks to the impact of a tiny number of blockbusters deals, including the Elan takeover.

The data records a drop in the number of big, medium and small-size transactions but the upper end of the market has proved most resilient so far this year, down just 8pc.

Mid-market deal flows are down by more than a half, however, with a big drop in the number of small deals also recorded.

Despite inroads from the City of London and Wall Street, Irish law firms continue to dominate the league table of deal advisers.

A&L Goodbody, Matheson and Arthur Cox dominate the table both in terms of the number of deals acted on and the value of transactions.

Irish Independent

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