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Consumer Products Deals Quarterly, January-March 2011 - Declining deal volume - EY - Global

Consumer Products Deals Quarterly, January-March 2011

Declining deal volume

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The number of deals declined in all sectors in Q1 11 except tobacco, in which there was a five-deal increase.

The total number of deals declined by 30% (106 deals) between Q4 10 and Q1 11. Deal values, however, held up much better and average disclosed deal size increased.

Values declined more than volume

There were 250 deals in Q1 11, a 30% decline from the 356 deals in Q4 10 and the first quarter on quarter decline since Q4 09. Corporate deals, which represented 88% of total deals in Q1 11, fell by 94 deals to 220 deals, and PE deals fell by 12 deals to 30 deals. The number of deals declined in all sectors in Q1 11 except tobacco, in which there was a five-deal increase.

Deal volumes Q1 08 to Q1 11

Source: EY's analysis of FactSet Mergerstat data from Q1 08 to Q1 11.

Total disclosed deal value decreased by 9% from US$24.77b in Q4 10 to US$22.6b in Q1 11, driven by a lower number of disclosed deals, which declined from 138 deals to 105. The proportion of the 250 deals with a disclosed value was 42% (the equivalent percentage in Q4 10 was 39%).

The average transaction value for disclosed deals increased from US$179m in Q4 10 to US$215m in Q1 11 with six deals greater than US$1b in Q1 11, compared with three deals in Q4 10. There was one mega-deal in the quarter.

Deal values Q1 08 to Q1 11

Source: EY's analysis of FactSet Mergerstat data from Q1 08 to Q1 11.


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