Insights
M&A Activity in Ireland Valued at a Record High €70.9bn in First Half of 2018
August 20, 2018
A new study concerning M&A activity in the first half of 2018 by William Fry in collaboration with Mergermarket has shown that 76 M&A deals were undertaken with a combined value of nearly €71bn.
Contributing to the success is Japan’s Takeda Pharmaceutical’s proposed takeover of Irish headquartered Shire Pharmaceuticals for €67.1bn – the largest ever foreign takeover by a Japanese company.
While megadeals are certainly encouraging, Irish M&A has not just boosted its deal value with one-off transactions such as the proposed Takeda/Shire deal. The number of deals conducted has remained fairly stable since H1 2017’s review, with 80 transactions recorded compared to this year’s 76.
Mid-market activity (€5m-€250m) has also remained robust, accounting for 92% of deals, comparative to last year when it accounted for 93% of deals. Such deals include Nomad Foods’ acquisition of Green Isle Foods for €226m and Martello Finance Company’s €75m acquisition of Stellwagen Finance Company.
These deals demonstrate companies looking for strategic growth opportunities in Ireland. Other reasons for strong M&A in Ireland cited in the report include:
Ireland’s Strong Economic Growth
The European Commission estimated Irish economic growth at 7.3 per cent in 2017. While this is expected to moderate in 2018 to 4.4 per cent and in 2019 to 3.1 per cent, this is still well above the EU average of 1.7 per cent.
UK’s Exit from the EU
Within the financial services sector in particular, companies could be looking to acquire in Ireland as a base to service the European market.
Low Corporate Tax Rate
Ireland remains a popular choice for foreign buyers as they are attracted by the country’s low corporate tax rate of 12.5 per cent and policy stability across commercial and taxation sectors.
As the trends above are expected to be here for the long-term and with more mid-market transactions in the pipeline, it appears that H2 2018 should enjoy the same successes as the first half of the year.
WE ARE READY WHEN YOU ARE
Call Benchmark International today if you are interested in an exit or growth strategy or if you are interested in acquiring.
Share This Post
Categories
Get These Insights Delivered Directly To Your Email
Explore our curated collection today and stay ahead of the curve in M&A.
Verwandte Artikel
Benchmark International Announces Tyrus O’Neill as New Chief Executive Officer (CEO) of the AmericasTAMPA, FL – 03/14/2025 – Benchmark International, a leading global mergers and acquisitions (M&A) advisory firm, is excited to announce Tyrus O’Neill as the new Chief Executive Officer (CEO) of the Americas. The appointment is part of Benchmark International’s ongoing strategy to accelerate its global growth and service innovation.Erwartungen für Fusionen und Übernahmen im mittleren Marktsegment im Jahr 2025Jüngste Umfragen haben gezeigt, dass die M&A-Aussichten für das Jahr 2025 den größten Optimismus der letzten Jahre in Bezug auf Geschäftsabschlüsse erkennen lassen. Die 14. jährliche Umfrage der Citizens Bank unter mehr als 400 Führungskräften des Mittelstands und Private-Equity-Investoren in den Vereinigten Staaten ergab, dass ein günstiges wirtschaftliches Umfeld ein Hauptgrund dafür ist, dass Unternehmen und Investoren im Jahr 2025 nach M&A-Strategien suchen werden. Außerdem haben sich die Unsicherheiten der letzten Jahre gelegt, und die Bewertungen werden als stabil oder höher als in den vergangenen Jahren eingeschätzt. Kleinere mittelständische Unternehmen gehen indes zurückhaltender vor, und viele Verkäufer entscheiden sich für den Verkauf eines Teils ihres Unternehmens und nicht für einen Komplettverkauf. Zusammenfassend lässt sich sagen, dass die befragten Entscheidungsträger für das Jahr 2025 ein Wirtschaftswachstum und eine höhere Rate an M&A-Transaktionen erwarten.