The value of mergers and acquisitions involving Irish companies more than trebled in the first quarter of the year compared to the same period last year, a new survey has indicated.
The survey from Ion Equity, shows that Irish companies were involved in transactions worth almost €4.2 billion in the first three months of 2007 compared to less than €1.2 billion in the first quarter of 2006.
Although the figures were distorted somewhat by Quinlan Private's €1.6 billion acquisition of a portfolio of Marriott hotels, the figures show that M&A activity remains strong and is "likely to remain strong over the remainder of the year," according to Ion Equity Director Joe Devine.
"Business sentiment in Ireland remains strong and there remains abundant capital for acquisitions from both banks and private equity investors. Equity markets might have wobbled in recent months but the fundamental drivers of business remain in good shape
While it is not yet clear whether fears of a US slowdown will spread to this side of the world, "factors peculiar to the US economy, specifically exposure to sub-prime lending, are not as prevalent in Europe," he added.
Mr Devine said that the current situation at Irish Continental Group, Independent News & Media's wish to increase its presence in the Australian market and Riverdeep's reported interest in a €3 billion bid for Reed Elsevier's education publishing business give an indication of the level of activity involving public companies. "And that doesn't even include M&A activity by private Irish companies, much of which doesn't even become public knowledge," he said.
Most of the big money deals revolved around property transactions. Deals involving Quinlan Private, Howard Holdings, Boundary Capital, Superquinn and Jim Mansfield accounted for almost half the value of first quarter deals.