15/11/10 – Deal Value of Mega-Deals for the Engineering and Construction Sector Increases in Third Quarter of 2010
15 November 2010
The merger and acquisition deal activity in the global engineering and construction sector saw an increase in deal value in the third quarter of 2010.
Q3 saw $13.03 billion compared to the second quarter’s $11.43 billion, according to the PwC US report, Engineering growth: Third-quarter 2010 global engineering & construction mergers and acquisitions analysis. However, deal volume declined in the third quarter of 2010, with 35 deals, compared with the prior quarter’s 43 deals.
Overall, general recovery in the environment has continued since Q1 2009 and is expected to see additional growth as global economic trends continue to improve.
Year-over-year, deal value in Q3 2010 ($13.03 billion) experienced an almost 55 percent uptick compared to Q3 2009’s $8.43 billion. Additionally, despite a slight year-over-year decline in deal volume with 35 deals this quarter compared to 36 deals in Q3 2009, 2010 looks likely to surpass 2009 in both deal volume and value totals for the E&C sector.
"Although high levels of unemployment and fears of a double-dip recession are still present, a number of indicators show that the deal environment will keep improving," said Kent Goetjen, U.S. engineering and construction industry leader at PwC. "We expect factors such as ongoing access to credit, advancing equity markets and relatively constrained valuations to continue to spur growth."