12/10/18

ISLE OF MAN: Sharp rise in island based mergers and acquisitions

(IOM Today) -- The Isle of Man experienced a 38%increase in the number of local merger and acquisitions [M&A] transactions in the first half of 2018 when compared to the final six months of last year.

This is according to a report released by law firm Appleby, which has an office in Athol Street, Douglas.

The latest edition of Offshore-i, an Appleby report that provides data and insight on merger and acquisition activity in the major offshore financial centres, focuses on transactions announced over the first half of 2018.

Following a similar pattern to most of the world’s regions, the volume of offshore deals has fallen back from levels seen in the latter half of 2017, while value is on the rise.

The Isle of Man, meanwhile, saw a sharp increase in the number of deals in the first half of 2018 compared to the last six months of the previous year, while cumulative deal value fell.

Faye Moffett, managing partner and group head of the corporate department in Appleby’s island office, said: ‘With many countries around the world reporting a downturn in activity this year, it is gratifying to see the Isle of Man in positive territory.

‘Collectively, the Crown Dependencies are making a strong showing in 2018, with investment funds and manufacturing companies featuring prominently in deal activity.’

Isle of Man-incorporated companies were the target of 29 deals in the first six months of 2018 worth a cumulative value of USD1.55bn. [£1,185,300,500]

The report found the Isle of Man, Jersey and Guernsey showed a strong preference for domestic deals in the first half of 2018, demonstrating faith in the local economies and a recognition there are local targets worth investing in.

The M&A Environment Across Jurisdictions

In total, there were 1,344 global offshore deals recorded in the first half of 2018, representing a 10% decrease from the last six months of 2017.

Billion-dollar deals have become frequent in the offshore region, with 28 reported in the first half of this year. The surge of high-value transactions has been bolstered by a desire by boards of major companies to head off disruptive technological threats and accelerate growth, according to the report.