Africa Focus: Spring 2018
Financing Africa: Challenges and opportunities
Loans and high yield bonds make a comeback as economic vitality breeds confidence among investors and issuers
• Leveraged loan value outstripped 2016 level by €131.3 billion in 2017 • Value of high yield bonds has surpassed 2016 by 32 percent • Refinancing and repricing drive the market • Leveraged loans continue primacy over high yield bonds
• Average size of leveraged loan increases significantly • Weighted margin of first-lien loan drops to lowest level in years • Term loan B issuance outstripped 2016 levels within the first three quarters of 2017 • Cov-lite deals march on
M&A's strategic relevance will ensure transactions continue to close in the face of geopolitical uncertainty. But trends in four areas—taxation, technology, PE, and antitrust—could define the coming year of dealmaking
The hunt for blockbuster drugs is driving activity within the sector, while technology firms’ increasing presence in the market will be an area to watch in 2018.
The race to consolidate resulted in a flurry of megadeals in 2017, while the disruptive impact of technology on consumer behavior continues to generate activity
Oil & gas dealmaking continues to generate the bulk of sector activity; consolidation in the power sector was driven by unsettled market conditions.
While market uncertainty surrounding tax reforms and NAFTA negotiations caused sector deal value to take a hit in 2017, technological convergence continues to generate a healthy level of deals.
The consumer, energy, financial services and tech sectors had standout years in 2017.
US dealmaking remains robust, as M&A's strategic value remains as relevant as ever.
Overall deal value declined in 2017, yet it was higher than all other post-crisis years from 2008 to 2013.
Record levels of dry powder and intense competition for deals caused buyout volume to reach a record high in 2017, while exit activity is encouraged by high valuations.
Insurance assets are attracting dealmakers due to low capital requirements and steady cash flows. Established fintech providers are using M&A to expand geographically
Our exclusive survey identifies impacts from tax reforms and the repatriation of offshore capital as key areas to watch in 2018. Digital innovation remains a major driver for transactions, while effective due diligence poses a challenge.
The sector saw the highest number of deals across all industries in 2017, as the hunt for innovative technologies continues to break down sector boundaries