Offshore deal value increased by whopping 79% in Q1

It's the highest since the end of 2012.

Total offshore deal value increased by a dramatic 79% across jurisdictions in the first quarter of 2014 when compared to the same period last year and was at its highest since the end of 2012, according to a report released today by Appleby, one of the world’s largest providers of offshore legal, fiduciary and administration services.

Consistent with this growth, Hong Kong saw its total deal value increase by 137% over Q1 2013 and 82% over the last quarter of 2013.

Here's more from Appleby:

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 during the first quarter of 2014. 

Considering the first quarter of the year is historically the quietest for dealmaking, the findings in this report set the stage for what looks to be an active 2014.

“The sustained growth in M&A deal value, including the significant increase in Hong Kong, is an indicator of the progress we expect to see through the rest of the year,” said Judy Lee, a Hong Kong-based Appleby partner who practises a wide range of Bermuda, Cayman and BVI corporate and commercial law.

“This quarter’s average deal size of US110m across jurisdictions is among the highest in the past seven years, and the clearest sign yet of a new depth to the market as investors become ever-more willing to put money to work on larger transactions.”

The total value of Hong Kong deals grew from USD7.5bn in the last quarter of 2013 to USD13.7bn in the first quarter of this year, despite the number of deals decreasing from 100 to 89.

Further, the average deal size more than doubled, jumping from USD75m to USD154m, which represents the largest average deal value across jurisdictions for Q1 2014.