HORIZONS | BDO'S GLOBAL VIEWOF MID-MARKET DEAL ACTIVITY 33
ISRAEL DEAL VALUE ANDVOLUME FALL BACK BUT PICTURE LOOKS BRIGHTER FOR 2022
M&A activity decreased during Q4 2021 in terms of overall value and volume. A total of 27 deals, with a combined deal value of USD 3,177m, were successfully completed in Q4 2021. This represented an 18% decrease in deal value and a decrease in deal volume from the 38 deals completed in Q3 2021 to the 27 compared in Q4 2021. The reduction within the overall deal volume was more substantial than that of deal value, which resulted in an increase of 16% in the average transaction value from the previous quarter to USD 118m for the quarter, indicative of bigger deals being transacted.
In Q4 2021, PE was responsible for 16 deals worth a total of USD 1,199m, which accounted for 38% of the deal count and 59% of the value and represented increased levels of value and volume from Q3 2021. KEY SECTORS AND DEALS Israel's top 10 Q4 2021 deals had an aggregated value of USD 2,355m, representing 74% of total M&A transactions. The largest transaction was the USD 425m acquisition of Dalia Power Energies Ltd by the Meshek Energy- Renewable Energies Ltd. Other key deals included the USD 315m acquisition of Celeno Communications Ltd by Renesas Electronics Corporation and the USD 283m acquisition of the Ashdod Desalination Plant by Shapir Engineering and Industry Ltd and Generation Capital Ltd. TMT led the way in sector activity with 17 deals (63% of total transactions) in Q4 2021. Industrial & Chemicals was
BIG PICTURE
• Q4 2021 M&A value decreased (c.18%) compared to the previous quarter. Deal volume also dropped from 38 deals in Q3 2021 to 27 deals in Q4 2021 • PE recorded an increase in activity levels from the previous quarter • The BDO Heat Chart shows 154 potential deals, suggesting that a ramp up in activity lies ahead.
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