HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 35
ISRAEL DEAL ACTIVITY STALLS INQ1 BUT OUTLOOK LOOKS BRIGHTER
M&A ACTIVITY DROPPED BACK DURINGQ1 2022 INTERMS OF VALUE. A total of 28 deals, with a combined deal value of USD 2,192m, were successfully completed in Q1 2022. This represented a 39% decrease in deal value, and a marginal decrease in deal volume from the 30 deals completed in Q4 2021 to the 28 compared in Q1 2022. The reduction in deal value was more substantial than that of deal volume, which led to a decrease of 35% in the quarterly average transaction value to USD 78m, indicating that smaller-sized deals were being completed. Private equity activity also declined during Q1 2022, with figures showing a decrease in terms of volume and as well as value compared to the previous quarter. In Q1 2022, PE was responsible for 12 deals, worth a total of USD 846m, which represented 43% of the deal count and 39% of the overall value for the quarter.
KEY SECTORS AND DEALS Israel's Top 10 Q1 2022 deals had an aggregate value of USD 1,350m, representing 38% of total M&A transactions. The quarter’s largest transaction was the USD 200m acquisition of Driivz Ltd by Vontier Corporation. Other big deals included the USD 181m acquisition of a 16% stake in Bazan Group by Hagag Group and the USD 176m acquisition of a 60% stake in Mini Line Ltd by Supe Sol Ltd. TMT was the leading sector with 12 deals (43% of total transactions) in Q1 2022. Industrial & Chemicals was in second place with 10 deals. Next were Consumer and Business Services, each with three deals (22% of all transactions), followed by Energy, Mining & Utilities and Pharma, Medical & Biotech, with two deals each (14% of all transactions). Four of the Top 10 deals involved foreign bidders, supporting the continued global interest in Israel's
BIG PICTURE
• Q1 2022 M&A value decreased (c.39%) in comparison to the previous quarter. Deal volume also fell slightly, from 30 deals in Q4 2021 to 28 deals in Q1 2022 • PE activity dropped in Q1 2022 compared to Q4 2021 • The BDO Heat Chart shows 189 potential deals in the region, suggesting a ramp up in activity.
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