Global deal values and valuation multiples continue to rise led by media agencies and IT services M&A
By Ramone Param, Director, Equiteq
- The number of completed deals rose 12%
- Median deal sizes nearly doubled vs. Q3 2017
- Activity remains focused on media agencies and IT services
- Strong rises in M&A in North America and APAC
- Equiteq Knowledge Economy Share Price Index pushes to new highs
The global M&A market across the knowledge economy was strong in the third quarter of 2018. Market data from the quarter reflects a key trend we have been monitoring over the last eighteen months: global buyers are pushing ahead with larger deals at premium prices. This is partly down to strategic buyers and private equity having record capital available for M&A. Given the low interest rate environment, there is pressure to deploy this capital on larger transactions. Particularly amid increasing signs that quantitative easing programs are coming to an end across developed economies.
The following summarizes the main trends discussed in more detail in our recent Q3 2018 M&A update report.