Last week, the Census Bureau announced that Americans’ incomes are growing and poverty is shrinking. The Federal Reserve announced that consumer credit grew more than expected in July. Lastly, the Labor Department concluded that job openings increased to a record-high level.
According to PitchBook, for the week ending September 15, a total of 40 mergers and acquisition deals were announced for a total of $22.44 billion in capital invested. The information technology sector experienced the largest share of the action with 12 deals for $8.47 billion. Business-to-business firms saw the largest share of capital with $9.1 billion on 7 deals. The following are a selection of the transactions within Skyline’s core industry focuses:
In capital markets last week, two companies priced their IPOs and debuted shares: 111, Inc. and NIO, Inc. The two companies raised $100.45 million and $1 billion, respectively. Further, British car-maker Aston Martin has made news ahead of its London IPO
In August, private equity deal making fell from the 2018 highs set in July, according to Pitchbook data. For the month, private equity investment for U.S. companies totaled $43.1 billion among 379 deals. This is down 39.6% from $71.26 billion invested in July but up 46.8% from $29.35 billion invested in August 2017. For the year through August, PE investment has totaled $317.69 billion among 3,382 deals, an increase of $70.23 billion over the same period of 2017.
According to data from Pitchbook, venture capital firms (VCs) invested a total of $8.86 billion into 768 U.S. companies in August. These numbers are down 19.3% from the $10.97 billion invested by VCs in August 2017 but are up 4.70% from the total invested capital in July 2018.
The U.S. economy has begun to show signs of slight stagnation in August; however, most readings continue to remain strong. The employment figures, released by the Bureau of Labor Statistics, showed that the labor market found room to expand, despite being historically tight. The U.S. added 201,000 jobs in August, up 28.0% from July, and maintained the unemployment rate at 3.9%. Furthermore, wages grew at 2.9%, their fastest annualized rate since before the Great Recession
For August 2018, mergers and acquisitions (M&A) activity sharpened its downward trend from annual highs set in June. According to data from Pitchbook, total disclosed capital invested for mergers & acquisitions and buyouts reached $132.1 billion in August, down 38.3% from the $214.0 billion invested in July and down 61.5% from the 2018 high of $343.2 billion invested in June. August was up 110.6% from the $63.0 billion invested in August 2017. M&A capital investment now totals $1.34 trillion year-to-date, up 59.6% from $837.8 billion in the same period of 2017.
For the month of August, nine U.S. companies made debuts on American stock exchanges, raising a combined $1.88 billion, according to data from Pitchbook. The figures are down slightly from July, when there were 15 IPOs totaling $2.08 billion in capital raised. As for the calendar year-to-date, $25.6 billion has been raised through 117 IPOs, up from the $22.7 billion raised in the same period of 2017.
For August, the U.S. posted surprising job figures, adding more jobs than expected and finding the wage inflation that has been missing for so long. Further, the unemployment rate maintained at consistent levels. Lastly, the ISM Purchasing Manager’s Index was released for August, registering at its highest level in 14 years.
According to Pitchbook, mergers and acquisitions activity last week led to $12.29 billion in invested capital across 34 deals. The financial services sector led the way with $5.58 billion among only three deals. However, business-to-consumer firms announced nine deals, worth a disclosed $285 million.