HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 27
DACH M&A AND PE ACTIVITY REMAIN STABLE IN FINAL QUARTER
In general, by the end of the year, both M&A activity in DACH and the overall volume and value of deals had followed downward trends. Total deal numbers in Q4 2021 dropped by more than half compared to the previous quarter. The decline in PE deal volume was even sharper, with a 60% fall and value also dropped by a third. Compared to Q3 2021, there were 48 less deals in Q4 2021, a decline of 54.5%. Furthermore, overall deal value was down by 38% compared to the previous quarter. In summary, mid- market M&A activity in the DACH region remained relatively subdued in the final quarter of the year. This general decline in deal volume and value in Q4 2021 was largely replicated across the globe.
KEY DEALS AND SECTORS In Q4 2021, the top 10 deals accounted for 70% of the total value. Out of the 20 top deals, four Swiss, two Austrian, and 14 German companies were targeted. As many as eight of those involved a bidder from the same country. Bidders from seven different countries outside of the region were involved in the top 20 deals, maintaining the trend of international interest in the region. The most active bidders were from the USA with three transactions, the UK and China (two each), and the Czech Republic, Japan, Italy and Israel, each involved in one transaction. The biggest overall deal in the quarter was the acquisition of German professional and retail hair company Wella AG, by US KKR & Co Inc from Coty Inc., the New York-based personal care products company. The deal was worth USD 427m for a 9% stake. The second biggest transaction involved a Swiss target in the Business Services sector with a value of USD 406m. This deal saw AS Equity Partners acquire 100% of Swiss Port Solutions AG from Swiss Post International AG.
BIG PICTURE
• Deal value and volume fall compared to the previous quarter • PE buyouts decreased not only in absolute numbers, but also relative to the overall number and value of deals. Relative PE deal value dropped by almost 30% compared to Q3 2021 • In the top 20 deals, TMT and Pharma, Medical & Biotech led the way in sector activity.
PE/TRADE VOLUME &VALUE
120
12,000
100
10,000
80
8,000
60
6,000
4,000
40
20
2,000
0
0
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PE Value (USD M)
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