SALT LAKE CITY, May 12, 2017 /PRNewswire/ -- MountainWest Capital Network (MWCN) today released its 22nd annual Deal Flow Report. The report, which provides a deep dive into the health and number of deals within the state, indicated 2016 remained a strong year, with funding for deals surpassing 2015 by almost two times, from $10 billion to $19 billion. Number of deals totaled 423, which was down from the previous year of 524 deals.
According to the report, mergers & acquisitions (M&A) ranked highest in funding with $16.8 billion, almost tripling the 2015 mark of $6.1 billion. Private placement had the most deals, at 206. M&As were second in number of deals, with 202. The three largest transactions for 2016 -- Dominion Resources, Inc.'s acquisition of Questar Corporation, a $6.1 billion dollar merger/acquisition; Boral Industries, Inc.'s acquisition of Headwaters Incorporated, a $2.6 billion dollar merger/acquisition; and Dominion Midstream Partners, LP's acquisition of Questar Pipeline, LLC, a $1.7 billion dollar merger/acquisition contributed to these numbers.
In addition, the number of public companies in Utah that had capital raises in 2016 was slightly fewer than the previous year at 15, including NuSkin Enterprises, Inc.'s issuance of $210 million in convertible debt and HealthEquity, Inc.'s issuance of almost $90 million in common stock. Within the four-year trend of the report, 2013 remains the strongest year for public company transactions, with 22 companies and $5.5 billion in total funding.
In industry deal trends, technology and software remained the highest in number of deals, though down from the previous year, from 196 deals to 151. Consumer and retail deals remained the same at 72 deals, with an upward trend from 2013, which had 47 deals. Healthcare deals were at an all-time four-year low, with 43 deals, compared with 67 deals in 2015, and the peak 70 deals in 2014.
"Once again, Utah has shown a strong number of deals and, this year, set a record dollar amount of almost $19 billion dollars," said Quinton J. Stephens, an attorney with Ballard Spahr LLP and the Chair of MWCN's Deal Flow Event. "It is no secret that Utah has one of the strongest economies in the nation and remains a hotspot for capital transactions, especially in the technology and software arena."
The Deal Flow Report is published each year by MWCN to further its mission of fostering the dynamic flow of information about capital formation and distribution. It also serves to educate and mentor, recognize and reward successful business performance, and relationships fostered through networking. The report represents the most comprehensive annual assessment of capital raised and mergers & acquisition transactions compiled in Utah. The Deal Flow Report does not contain information on transactions that were either confidential or otherwise not publicly disclosed. MWCN members, sponsors, and guests of the Deal Flow conference and luncheon receive the Deal Flow Report. During the event announcing the Deal Flow Report, David Bywater, CEO of Vivint Solar, a Utah-based leading provider of residential solar energy solutions, addressed the need for innovation and collaboration among business and their constituents. The full MWCN Deal Flow Report for 2016 can be downloaded here: http://www.mwcn.org/deal-flow/.
About MountainWest Capital Network
MountainWest Capital Network is Utah's first and largest business networking organization devoted to supporting entrepreneurial success, and dedicated to the flow of financial, entrepreneurial and intellectual capital. LIKE us on Facebook and follow us on Twitter @MWCN and LinkedIn. www.mwcn.org
Jacob Moon, Method Communications
Cheri Waldron, MountainWest Capital Network
Quinton Stephens, Ballard Spahr LLP
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SOURCE MountainWest Capital Network