Statistics from Appleby show that offshore deal volumes rose
steadily throughout 2013, resulting in a cumulative 12-month deal
value topped only three times in the last decade.
The 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 observed
considerable gains in Q4 over the previous quarter in terms of the
number of deals, their cumulative value, and average deal size.
There were 49 deals involving Guernsey targets in Q4 2013 worth
US$2.7bn, with an average deal size of US$56m. While this number
represents a decrease in the amount of deals when compared to the
previous quarter, an increase in the number of Guernsey companies
acting as acquirers is cause for optimism.
"The growing strength of offshore companies as acquirers in
the global M&A markets is beginning to gain traction,"
said Jeremy Berchem, Corporate and Commercial Group Partner in
"In Guernsey, we saw a significant gain in the number of
deals involving a local acquirer in the fourth quarter of 2013 when
compared to the previous quarter, as well as an uptick over the
same period of 2012."
There were 27 purchases by Guernsey-based companies totalling
US$865m. in the fourth quarter of 2013, which represents a 29%
increase in volume and a 9% jump in acquisition values over the
previous quarter. Compared to the same quarter of 2012, that
represents an 8% increase in deals and an uptick of 6% in deal
value in which Guernsey-based companies were the acquirer.
For the year, offshore companies have been busy and were
involved in transactions across a wide range of sectors and
geographies. The return to form of the equity capital markets, and
particularly the heating up of the IPO pipeline, has been a notable
feature for 2013, as has the steadily growing frequency of deals in
the US$1bn-plus range. The year ended with a cumulative 12-month
deal value of US$151bn, an annual total topped only three times in
the last decade.
In Q4 2013 the offshore markets ranked sixth amongst world
regions for deal volume, fifth for deal value and third for average
deal size. Only North America and South and Central America came in
with a higher deal average.
Cameron Adderley, Partner and Global Head of Corporate &
Commercial, said: "While the final quarter of the year is
typically the busiest, every one of the principal indicators has
progressively improved. Indeed, the global M&A environment is
fragile and to an extent lacks depth, but we can't help but
view these year-end numbers as positive."
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