EMS: M&A activity down in 2011

EMS Consolidations were the most common type of transaction with 15 transactions in 2011, or 47% of total activity, compared to 13 transactions in 2010 which represented 28% of activity last year. In 2011, there were only seven Vertical/Horizontal Convergence transactions, down significantly from the 15 recorded in 2010. This year’s activity represented 22% of the total, compared to 33% last year. Private equity investments remained equal to last year’s activity at eight total transactions in 2011, or 25% of the total, as compared to 17% last year. Lincoln expects that this stagnancy was due in part to the volatile market conditions and financing difficulty during the year triggered by concerns over the European debt crisis. © Lincoln International / Image has zoom function EMS divestiture transactions were down with one transaction in 2011 compared to seven transactions in 2010, representing approximately 3% and 15% of total transactions in 2011 and 2010, respectively. OEM divestitures accounted for one transaction in 2011 compared to three in 2010. As a percentage of total transactions, OEM divestitures accounted for 3% in 2011 as opposed to 7% in 2010. In terms of the size of transactions, 2011 was led by the Small Tier, with 22 transactions; followed by Large Tier with four transactions; Mid Tier with six transactions.