Deal volumes declined just 1% in Q2 12, but total deal values jumped sharply.
Deal volumes were flat in the second quarter, but total deal values jumped sharply. Q1 12 marked the low point in deal values since Q2 09, and in stark contrast Q2 12 marked the high point by some considerable margin.
Six of the top 10 deals had values in excess of US$1b, and two megadeals were announced in the quarter.
Deal volumes declined just 1% in Q2 12 to 303 deals from 305 in Q1 12. Given the three preceding consecutive quarters of declining volumes, the four-period long-term moving average of deal volume continued to move lower in the second quarter, dropping to 351 deals from 391 in Q1 12.
After dropping by almost two-thirds in three quarters, private equity activity partly recovered in Q2 12, rising from 43 deals to 51 deals.
Total disclosed deal value increased sharply in the second quarter, rising almost sevenfold from US$7.5b in Q1 12 to US$51.2b in Q2 12, driven by the announcement of two megadeals and a number of other large-ticket transactions.
Average deal value also increased markedly from US$96m in Q1 12 to US$466m in Q2 12, reversing six quarters of consecutive decline. The proportion of deals with disclosed values increased to 36% in Q2 12 from 26% in Q1 12.
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