Overall M&A activity slowed in the first quarter of 2013 as announced volume and value were the slowest of any quarter over the past three years. The first quarter recorded 28 transactions worth $50 million or more for a total deal value of $9.3 billion, down 30 percent from the previous quarter, which generated 40 transactions totaling $12.7 billion. The industrial manufacturing sector also witnessed a significant decline in both volume and value from the first quarter of 2012 with 42 deals worth $17.2 billion.

 “Given the decline in overall transaction activity during the first quarter, deal valuations dropped  below longer-term historical norms, as acquirers focused less on cross-border deals and more on consolidating their local markets, reflecting a more guarded approach to M&A,” said Bobby Bono, U.S. industrial manufacturing leader for PwC. “We remain cautiously optimistic about deal activity for the remainder of the year given the potential for companies to gradually shift from a primary focus on cost-cutting and organic expansion initiatives toward more acquisitive growth strategies given the continued global recovery.”