Push to Close Deals in 4Q 2012 Evident in Many Industries
January 31, 2013
As many people were anticipating, several industries saw a spike in PE investment during 4Q 2012 as buyers and sellers alike pushed to close deals before tax rates increased on January 1. Dealmaking was particularly robust in the B2B industry, where there was $32.6 billion invested (the most since 4Q 2007) and more exits (60) than any quarter on record. While holiday spending was disappointing, capital invested in the B2C industry nearly doubled from $10.8 billion in 3Q to $22.2 billion in 4Q. Somewhat surprisingly, there was a decrease in IT deals in 4Q; however, capital invested climbed to its highest level ($18.1 billion) since 4Q 2007. There was also a downtick in dealmaking in the Healthcare industry, with continued uncertainty surrounding healthcare regulation and taxation resulting in the lowest quarterly total for deals (55) in more than two years.
In-depth information and analyses on each of these industries can be found in the Private Equity Deal Flow Profiles published by McGladrey. Powered by PitchBook, the reports include current industry trends, deal and exit activity, and insight from McGladrey professionals.
To learn more or download the reports, click here.