Please find attached our Offshore-i report on transactions for the third quarter of 2013. Offshore-i provides data and insight about the mergers and acquisition activity going on in the major offshore jurisdictions around the world.
The key themes emerging from the Q3, 2013 report show that:
- In the third quarter of 2013 there were 538 deals announced offshore, with a combined value of USD34.5bn. This puts the quarterly activity levels slightly ahead of Q2 2013.
- In Q3 2013 the average deal size stood at USD64m, and that figure is almost the same for the year to date, which is USD65m. If this is maintained to year end, or improved, deal sizes in 2013 will be greater than they have been for at least seven out of the last ten years.
- There are six deals worth over USD1bn this quarter. The top 10 deals make up just over a third of the total value of the quarter, a consistent ratio for 2013 which we see as a positive sign of depth returning to the markets.
- Deals are taking place across the value chain and with some consistency of spread: with USD8bn-worth of USD1bn-plus deals, and then USD6bn-worth of each of four other categories: sub-USD100m, USD100-250m, USD250-500m and USD500-1bn.
- Financial services and insurance continue to be the most active sectors, with manufacturing also particularly busy this quarter.
- Minority stake deals continue to be the most prominent, and IPOs and buyouts are making a comeback.
- Q3 2013 was a strong quarter for the Cayman Islands, followed by Bermuda, Hong Kong and the BVI. Guernsey and the Isle of Man also performed well against a year ago.
- Acquisition activity led by companies incorporated offshore increased in volume but dropped in value, and there were 512 deals with a cumulative value of USD26.8bn, up 14% in terms of volume and down 21% by value.
- Hong Kong acquirers again spent the most money in Q3, with an aggregate deal value of USD8.4bn which represented 31% of total spending by offshore acquirers.
- By average deal size the offshore region ranks third globally, behind only North America and South and Central America in Q3.
Read a summary version of the report here.
If you would like to receive the full report for this quarter, please email offshore-i@applebyglobal.com stating your name and organisation.
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