Issue 7 2020

Acquisition International - Issue 7 2020 77 Number and Aggregate Value (Mil USD) of Private Equity Deals Globally by Deal Type: 2006-2020 YTD (as at 24th April 2020) Number and Aggregate Value (mil USD) of Private Equity Deals Globally: 2006- 2020 YTD (as at 24th April 2020) Deal quarterly value (Announced date) Number of deals Aggregate deal value (m USD) Q2 2020 301 10,205 Q1 2020 1,640 142,702 Q4 2019 1,947 152,545 Q3 2019 1,980 158,069 Q2 2019 2,140 209,575 Q1 2019 1,857 151,701 Q4 2018 1,857 152,364 Q3 2018 1,905 152,756 Q2 2018 2,021 180,601 Q1 2018 1,783 173,953 Q4 2017 1,783 144,322 Q3 2017 1,721 167,611 Q2 2017 1,692 174,935 Q1 2017 1,661 108,748 Q4 2016 1,664 130,210 Q3 2016 1,555 110,334 Q2 2016 1,622 136,242 Q1 2016 1,631 80,691 Q4 2015 1,843 194,848 Q3 2015 1,875 132,717 Q2 2015 1,946 128,262 Q1 2015 1,436 129,185 Q4 2014 1,488 109,914 Q3 2014 1,371 89,539 Q2 2014 1,324 100,970 World region (target) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Far East and Central Asia 707 647 768 747 828 564 157 Western Europe 547 610 610 555 486 452 73 North America 426 457 609 516 469 484 48 South and Central America 37 22 31 32 29 19 8 Middle East 39 46 43 35 44 42 8 Oceania 43 37 36 51 52 39 4 Africa 24 20 18 22 18 21 2 Eastern Europe 34 19 25 25 20 20 2 Number of Private Equity Deals by Region: 2006-2020 YTD (as at 24th April 2020) Bureau van Dijk The volume of deals announced in Q1 2020 slowed significantly due to the negative impact of the coronavirus pandemic to the lowest in two years (Q1 2018: 3,008 million) and stripped away growth recorded in Q4 2019. However, the overall value of deals targeting companies operating in the financial services sector in 2020 to date would have been worse if not for three transactions each worth more than USD 10,000 million being announced globally. Two of these were announced in the opening three months of 2020 and one accounted for 60 per cent of the USD 47,697 million-worth of deals already recorded for Q2 2020 to date, at the time of writing. The largest deal targeting the sector announced so far this calendar year features Aon of the UK planning to take Ireland- incorporated Willis Towers Watson private for USD 30,028 million. Russia nationalised 52 per cent of Sberbank Rossii for a reported USD 28,529 million in the year-to- date’s second-biggest financial services deal, while Kuwait Finance House’s all-scrip takeover of Ahli United Bank of Bahrain for USD 11,312 million placed third overall. M&A dealmaking targeting the financial services sector in Western Europe and the Far East and Central Asia reached 1,036 deals worth USD 70,195 million and 732 transactions totalling USD 60,597 million, respectively, in 2020 to date. The value of deals targeting Western Europe was bolstered by the Willis Towers acquisition, while targets based in the Far East and Central Asia accounted for ten of the sector’s top 20 deals announced globally so far this year. However, in terms of volume, they were overtaken by North America (1,210 deals). At the time of writing, 991 acquisitions worth USD 133,500 million have been announced in 2020 to date, which is more than the aggregate value recorded for all the forms of M&A dealmaking for the same timeframe. However, in terms of volume, minority stakes are the most prolific, at 2,093. In conclusion, the emergence of the coronavirus as a global pandemic and the subsequent lockdowns worldwide has led to a slowdown in M&A dealmaking targeting the financial services industry in the opening quarter of 2020 and the ongoing quarter. However, it appears that appetite still remains for individual high- value deals in the sector and cautious, cash-rich acquirors may be able to prop up activity by picking up distressed assets at a knock-down rate. Financial Services Number and Aggregate Value (Mil USD) of Private Equity Deals Globally by Target Sector: 2006-2020 YTD (as at 24th April 2020) Deal type Number of deals Aggregate deal value (m USD) Institutional buy-out 23,224 4,311,605 Minority stake 51,270 1,548,917 Acquisition 3,132 753,215 Management buy-out 1,742 67,164 Capital increase 1,049 61,350 Management buy-in 211 3,555 MBI / MBO 94 605 BvD sectors (target) Number of deals Aggregate deal value (m USD) Computer Software 16,010 1,052,588 Banking, Insurance & Financial Services 2,244 607,704 Business Services 2,798 449,041 Industrial, Electric & Electronic Machinery 4,881 431,955 Transport, Freight & Storage 878 389,493 Travel, Personal & Leisure 1,717 379,100 Utilities 832 369,470 Chemicals, Petroleum, Rubber & Plastic 2,153 363,931 Retail 1,710 346,430 Communications 1,259 253,669 Public Administration, Education, Health Social Services 1,507 251,299 Property Services 490 245,310 Media & Broadcasting 994 220,302 Food & Tobacco Manufacturing 1,045 200,262 Mining & Extraction 876 197,258 Construction 948 148,609 Wholesale 813 139,260 Transport Manufacturing 671 132,466 Computer Hardware 328 124,814 Biotechnology and Life Sciences 1,550 90,973