The second quarter of 2013 has seen an increase in the merger
and acquisition activity taking place in Guernsey.
Appleby's latest edition of Offshore-i, the
firm's quarterly report which provides data and insight on
merger and acquisition activity in major offshore financial
centres, has reported positive signs of a gradual return to more
stable transactional activity following several years of volatility
and a renewed confidence in offshore transactions. It shows that
deal volumes in Guernsey were up by 16% on Q1 to 66 transactions
and that in the global IPO market Guernsey incorporated companies
were involved in 4 of the 17 IPOs that completed in Q2, while of
the 22 planned IPOs, the largest deal on the London Stock Exchange
involves a Guernsey incorporated closed-ended fund looking to raise
We are encouraged to see the general robustness of the deals
announced in Guernsey in Q2," said Jeremy Berchem,
Appleby's Practice Group Head for the Corporate and Commercial
department in Guernsey.
Guernsey continues to strengthen its position in the global
financial marketplace and with volumes up by 16%, the latest
figures underpin the continued confidence of managers to domicile
their funds here. Globally, the number of deals has started to form
a pattern averaging out around 500 per quarter in five of the last
six quarters and so far this year we have seen 493 deals in Q2 and
491 in Q1. We feel comfortable asserting that business
confidence is at last returning to the markets.
At US$64m. for Q2, average deal size is higher than it has been
for five of the last eight years. The offshore region average
is also higher than all other regions except for North America at
US$119m. and Central and South America at US$109m."
When we look at the contribution of the top 10 offshore deals to
overall activity in Q2, we see that they accounted for just a third
of the cumulative deal value overall, as they did in Q1. We believe
that this gives further reason for optimism as values for past
quarters have been distorted by one-off mega deals. We can now see
genuine substance returning to the mid-market and activity
returning across the spectrum of business sizes. Transaction sizes
show tangible signs of settling at pre-boom levels, on a par with
2006 data, when US$61m. was spent on the average
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