Cayman remains hub for global deal flow


The Cayman Islands remained the most popular jurisdiction for deal making globally in the fourth quarter of 2013, experiencing a six percent uptick in the number of deals and a 16 percent increase in total deal value over the previous quarter, according to a report released today by Appleby.

The latest edition of Offshore-i, which provides data and insight on merger and acquisition activity in major offshore financial centres, focuses on deals during the fourth quarter of 2013, as well as the year as a whole. Overall Appleby observed considerable gains across jurisdictions in Q4 over the previous quarter in terms of the number of deals, their cumulative value, and average deal size.

“Cayman is starting to see heightened deal activity in the M&A space across all sectors, particularly oil and gas and financial services,” said Simon Raftopoulos, a Cayman-based corporate partner at Appleby. “Generally, there was more confidence in the funds market, contributing to a strong 2013 and active fourth quarter.”

Over the course of 2013, Cayman companies dominated offshore M&A activity as the target for most deals in three of the four quarters. In Q4, Cayman targets accounted for more than one in four of the deals done offshore, and for a third of the dollars spent.

Specifically, in the fourth quarter the Cayman Islands saw 168 deals with a combined worth of $15.6 billion, compared to 158 deals worth $13.4 billion in Q3. When compared to the same quarter a year ago, the volume levels remain broadly consistent, but value is over $4 billion higher than Q4 2012.

“While the final quarter of the year is typically the busiest, every one of the principal indicators has progressively improved,” said Cameron Adderley, partner and global head of Corporate & Commercial at Appleby. “Indeed, the global M&A environment is fragile and to an extent lacks depth, but we can’t help but view these year-end numbers as positive.”

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