Issue 7 2020

76 Acquisition International - Issue 7 2020 The volume and value of global private equity (PE) investment in Q1 2020 fell to the lowest recorded since Q3 2016 and Q1 2017, respectively. According to Zephyr, the M&A database published by Bureau van Dijk, 1,640 PE deals worth USD 142,702 million were announced in Q1 2020, down from 1,947 deals totalling USD 152,545 million in Q4 2019. lobal PE investment in Q1 2020 declined for the third consecutive quarter, from 2,140 deals aggregating at USD 209,575 million in Q2 2019; a lack of prolific dealmaking failed to act as a growth driver for value and investors continued to put the brakes on single deals with high values as only 301 deals worth USD 10,205 million have been announced in Q2 to date. At the time of writing, all of the top 20 PE deals by value exceeded USD 1,000 million but only two of these were worth USD 10,000 million or more. The largest deal announced in 2020 to date is Thyssenkrupp’s sale of its elevator technology business to a consortium of private equity firms - comprising Advent International, Cinven and RAG- Stiftung – for USD 18,719 million. Thyssenkrupp intends to use proceeds to pay down debt and strengthen its balance sheet. The institutional buyout of a 64 per cent stake in Univision Holdings by Searchlight Capital Partners and Forgelight Creative for an estimated USD 10,000 million is the second-biggest of the year so far. Backers of the top deals range from Blackstone and AustralianSuper to Stone Point Capital and Silver Lake Technology Management, while global targets of PE investment include IQSA Services, Veeam Software Holding, Duff & Phelps and Unizo Holdings. Companies operating in the computer software industry have attracted significant PE investment this year, having been targeted in 873 deals worth a combined USD 41,709 million. It was followed by industrial, electric and electronic machinery, with 167 deals aggregating at USD 23,363 million, and media and broadcasting (19 deals totalling USD 14,937 million). Western Europe was the top target region by PE value in Q2 2020 to date, with 73 deals worth USD 4,357 million. Far East and Central Asia placed second by value but first by volume, as 157 deals totalling USD 2,633 million have been announced so far this quarter. North America placed third overall, with 48 deals worth USD 2,213 million. In conclusion, the continued slowdown of PE investment mirrors a decline in mergers and acquisitions announced globally in 2020 to date due to the negative impact of the coronavirus pandemic and the subsequent lockdowns worldwide. On the other hand, it is encouraging to see investors are still willing to spend over USD 10,000 million on a target and they may take advantage the impact of the pandemic is having on businesses to make full use of dry powder to pursue buyouts or investments at a discount. Company: Bureau van Dijk E-Mail: bvd@bvdinfo.com Web: www.bvdinfo.com Private Equity G