Israel M&A, by the numbers
Selected charts provide an overview of 2018 performance, including M&A value and volume, top deals, leading sectors and top inbound bidders.
Israel had a stellar year for M&A in 2018. The country set a new record for value, logging US$26.5 billion over 103 deals. Such strong M&A activity may have come as no surprise to readers of last year's issue of Outlook for M&A in Israel. Indeed, 79 percent of executives we surveyed for last year’s report said that they expected to be involved in more deals in the year ahead than in the previous year.
Can Israel continue its M&A streak in 2019? That would be impressive, given that the country has set new records for value in every year since 2016. Both domestic and international politics are uncertain. And the global economy may be heading for a downturn—indeed, a number of economies are already slowing.
For the third year in a row, we conducted a survey to gain insight into the future of Israel M&A. In the first quarter of 2019, Mergermarket surveyed 51 senior-level executives at Israeli companies and private equity firms on their outlook for M&A. The survey included a combination of qualitative and quantitative questions, and all interviews were conducted over the telephone, by appointment.
Our research suggests that M&A will continue apace or even accelerate in 2019, as Israeli dealmakers enthuse about the current market.
Key takeaways from the study include:
Selected charts provide an overview of 2018 performance, including M&A value and volume, top deals, leading sectors and top inbound bidders.
Deals targeting Israeli companies hit an all-time high of US$26.5 billion in 2018, from 103 deals—an increase of 4.5 percent in terms of value compared to 2017.
Many survey respondents are so confident about the prospects for M&A activity in the next 12 months that they do not view a possible global economic slowdown as an obstacle.
The shift could be dramatic: In 2019, 69% of respondents predicted that private companies would be among the most active types of acquirers in the coming year, compared to just 23% who said so in 2018.
Our research suggests that M&A activity involving Israeli companies is set to remain strong during 2019 and beyond, despite potential challenges from slower global growth and both regional and international political volatility.