Volume-wise, Q2 2016 proved to be a fairly busy quarter. Recovery was on the back of particular activity in France and Italy, with other markets still showing subdued activity. Deal value (excluding the top five transactions) showed an even stronger performance with the quarter ending near the peak of Q2 2014.
Deal value decreased by more than 50 percent from €35 billion in Q1 2016 to €17 billion in Q2 2016, the lowest average deal value in more than two years. The main reason cited is the uncertainty around the potential outcome of the Brexit vote.
The mid to longer-term outlook will mainly depend on the Brexit terms and the outcome of the negotiations between Great Britain and the EU, and it may take until well into 2017 before we get further clarity on what the outcome may be directionally. Despite the proposed Brexit vote, the U.K. is still the European market that is attracting the highest PE investment over the past six months, with a total of 36 deals out of the 155 deals announced in H1 2016.
European M&A market update - August 2016