42014429 - Horizons Q1 2022_v06

ISSUE 1 | 2022

34

ISRAEL HEAT CHART BY SECTOR

TMT

31 20% 24 16% 22 14%

Industrials & Chemicals

Business Services

Consumer

21

14%

second place with five deals, accounting for 5 deals (19% of total transactions). Next on the sector list was Energy, Mining & Utilities with two deals (7%), followed by Business Services, Financial Services and Real Estate, all with one deal each (4% of total transactions each). Six of the top 10 deals involved foreign bidders, supporting the continued global interest in Israel's resilient economy and robust equity market. The foreign bidders consisted of four buyers from the USA and one each from Japan and Singapore. Israel continues to attract foreign investment due to its favourable economic conditions, considerable incentives, and strong R&D sector, coupled with its high- skilled and multilingual workforce.

Financial Services

16 10% 15 10%

Pharma, Medical & Biotech

Energy, Mining & Utilities

11

7% 5% 5%

Real Estate

7 7

Leisure TOTAL

154

ISRAEL MID-MARKET VOLUMES BY SECTOR

LOOKING AHEAD

Looking ahead to 2022, the data supports a ramp-up in the growth rate. The BDO Heat Chart for Q4 2021 showed 154 deals planned or in progress, compared to 97 deals in Q3 2021, suggesting a 59% increase in pipeline deals. Of the 154 deals planned or in progress for M&A in Israel, 31 are expected to take place in TMT (20% of deals), 24 in Industrials & Chemicals (16%) and 22 in Business Services (14%). Other active predicted sectors include 21 deals related to Consumer (14%), 16 in Financial Services (10%), 15 in Pharma, Medical & Biotech (10%), 11 in Energy, Mining & Utilities (7%) and finally Leisure and Real Estate, both with seven transactions (5% of total transactions each).

2020

2021

37

79

TAMAR BEN-DOR PRINCIPAL, M&A

0

13

tamarbe@bdo.co.il

3

11

2

3

14

20

6 1

12

6 6

6

10

14

Technology & Media

Financial Services

Energy, Mining & Utilities

Pharma, Medical & Biotech Real Estate

Consumer

Business Services

Leisure

Industrials & Chemicals

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