Skyline Advisors
  • Services
  • Team
  • Transactions
  • Industries
  • Reports
  • News
    • Capital Markets
    • Firm News
    • Resources
  • Contact
    • Newsletter
  • us

Partners for Strategic Transactions

June Capital Markets Review

7/15/2019

 

M&A Activity Spikes in June on the Back of Mega Deals

In June, there were 643 deals in M&A capital markets worth a combined $270 billion, the highest level since the start of the decade in 2010. However, 45% of that value is attributable to United Technologies’ blockbuster acquisition of defense contractor Raytheon. In fact, the deal is the largest since Time Warner acquired AOL in January 2001.
Picture
Compared with the month prior, deal value grew 39% from $194 billion on 121 less total deals. Compared to June of 2018, deal value is up 26% from $214 billion. Excluding the Raytheon deal, invested capital is down 23% and 30% from last month and last year, respectively. Year-to-date, there have been 4,476 deals worth $1.17 trillion, which is nearly double the $614 billion invested during the same period of 2018.
​
The Midwest had only one of their 17 M&A deals disclose terms which was publicly traded AeroVironment’s $28 million purchase of Lawrence, Kansas-based Pulse Aerospace.
Picture

Venture Capital Deal Count and Investment Fell from May Highs ​

​Venture capital investment fell 26% to $9 billion across 787 deals in May, and value is down 14% from last June. SpaceX received the largest venture investment, at $314 million, from the Ontario Teachers’ Pension Plan, an active investor in the alternative investment space.
​
About half of the VC activity took place in series A, B and C rounds, totaling 392 deals and $3.7 billion. Another 218 deals and $300 million was invested in the angel stage. Machine learning and artificial intelligence were attractive areas for investment, recording 102 deals and $1.4 billion in capital invested
Picture

Private Equity Firms Showing Signs of Softening as Economic Conditions are Assessed

According to Pitchbook, buyout shops invested $47 billion across 328 deals, 11% less in invested capital and 14% less in deal volume than in May. Compared with June 2018, investment is up 43% for private equity firms across 29% fewer transactions. Year-to-date in 2019, 29%, or $42 billion, more capital has been spent across 690 fewer deals.
​
Oil and gas companies absorbed $5.5 billion in capital across 14 deals, the largest of which was JPMorgan Asset Management’s buyout of natural gas electricity provider El Paso Electric. Cybersecurity also saw a good amount of activity, receiving $503 million in buyout funding among seven deals. Cybersecurity investment has become an increasingly attractive investment as big data and the digital age continues to grow in importance for corporations and enterprises.
Picture

Economic Signals Show Continued Strength Despite Trade Headwinds and Fed Consideration of a Rate Cu

Picture
  • The U.S. labor market has remained resilient against exogenous economic factors such as geopolitics and trade tensions. In June, the economy added 224 thousand new jobs while the unemployment rate ticked up one-tenth of a percent to 3.7% as more Americans began looking for new jobs. The healthcare and social assistance sector contributed largely to the increase, adding 50,500 jobs, while retail trade was the largest drawdown on payrolls, declining 5,800.

  • Inflation, as calculated by the consumer price index (CPI), continues to slightly fall, ticking down to 1.7%. Energy prices, which have been falling through the spring and summer, are contributing to the deceleration in inflation. In fact, core inflation, which is the CPI excluding food and energy, is up 2.1% on an annual basis. Wage growth is on an upward long-run trajectory but in recent months has slipped back towards 3.0%, possibly contributing to relatively muted inflation.

  • Federal Reserve officials have suggested a quarter-point or half-point decrease to the Federal Funds Rate at the next Federal Reserve Open Market Committee meeting at the end of July. Fed President Jerome Powell has cited slowing global growth, uncertainties surrounding trade, and rising currency tensions as “cross currents” on the U.S. economy.
​
  • In the Federal Reserve’s semi-annual Monetary Policy Report submitted to Congress, the Central Bank described that low-skilled workers are the main beneficiaries of the economic expansion as it cycles deeper into its later stages. The report notes that the employment-to-population ratio (EPOP) for prime-age college graduates fell 2.5% in the last recession and began its recovery in 2010. The EPOP for prime-age high school graduates fell 6% and did not begin a recovery until 2014. However, because the economy is reaching a record-length expansion, low-skilled workers have been able to make up for the lost time.

Comments are closed.

    Archives

    May 2023
    May 2022
    January 2022
    November 2021
    August 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    December 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017

    Categories

    All
    Auto Sales
    Bankruptcies
    Capital Markets
    Confidence
    Corporate Profits
    Debt
    Economy
    GDP
    Holiday
    Housing
    Industrial Production
    Inflation
    Initial Public Offerings
    Interest Rates
    Inventories
    Jobs
    Manufacturing
    Mergers And Acquisitions
    Middle Market
    Prices
    Private Equity
    Productivity
    Retail Spending
    Rural Economy
    Small Business
    Stock Market
    Taxes
    Trade
    Venture Capital
    Wages

    RSS Feed

Picture
​Skyline Advisors is a division of Ideation Ventures, Inc. Services involving securities are offered through M&A Securities Group, Inc.4151 N Mulberry Drive Suite 252, Kansas City, MO, 64116  (“MAS") . Services involving real estate brokerage are offered through Berkshire Hathaway HomeServices Ambassador Real Estate ("BHHS"). Skyline, MAS, and BHHS are separate entities. 
​

COPYRIGHT 2024. ALL RIGHTS RESERVED.
Virtual Data Room
Company   Services   Team   Transactions   Industries   Reports   News
Photo from inkknife_2000 (8.5 million views +)
  • Services
  • Team
  • Transactions
  • Industries
  • Reports
  • News
    • Capital Markets
    • Firm News
    • Resources
  • Contact
    • Newsletter
  • us