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Consumer Product Deals Quarterly - Q1 12 - Consumer products deals activity overview - EY - Global

Consumer Product Deals Quarterly: Q1 12

Consumer products deals
activity overview

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Volumes were down 18% against the prior quarter, with every sub-sector affected. Deal value also declined by 50%.

Amid ongoing economic uncertainty, M&A activity in the global consumer products sector slowed in Q1 12 to its lowest level in three years.

However, with significant deals in the pipeline, we expect a gradual recovery in the coming quarters.

Take a closer look at this quarter’s consumer products deals.

Deal highlights include:

  • Deal volumes decline for third consecutive quarter. First quarter deal volumes declined from 373 in Q4 11 to 305 deals in Q1 12 and activity reached its lowest level in our three-year review period starting in Q2 09. Volumes declined in all subsectors.
  • Total value declines sharply. Disclosed deal value decreased by 50% from US$15b in Q4 11 to US$7.5b in Q1 12. There were no mega deals, with a value greater than US$5b in the quarter and only two deals had a value of more than US$1b.
  • Private equity (PE) activity falls more than corporate. Set against an overall decline in deal volume of 18%, corporate deals fell by 11% from 294 deals in Q4 11 to 262 deals in Q1 12, but PE deals fell by 46% from 79 deals in Q4 11 to 43 deals in Q1 12.
  • Drop in cross-border activity greater than overall volume decline. There were 125 cross-border deals in Q4 11 and 98 deals during Q1 12, a decrease of 27 deals (22%). Europe once again dominated cross-border deals in terms of volume in Q1 12, both as the buyer and seller region.

New data source from Thomson Reuters

From this quarter forward our analysis is now based on a different, larger dataset collected by Thomson Reuters, compared with previous issues that used FactSet Mergerstat data.

To enable consistent trend comparisons we have used Thomson Reuters data for every quarter in our review period going back to the second quarter of 2009. As usual we have drawn on the insights of our global professionals to analyze the key investment trends underlying deal activity.

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