Jeremy Fago is the U.S. Power and Utilities Deals Leader at PwC.
It's become a happy habit of Public Utilities Fortnightly. Another calendar quarter passes by, and before long M&A uber-expert Jeremy Fago from PwC opines for us on the trend of transactions in our industry. For each quarter, he looks back at the run-up to the quarter in question, what deals were done during the quarter, and what we might expect in the quarters ahead.
What deals went down? What's driving deals? And what are the implications going forward? To find out, as usual, PUF turns to Jeremy.
PUF's Steve Mitnick: You've just come out with Q3, the third quarter deals report, in power and utilities. What's the top line here? You're saying this one was distinctive.
Jeremy Fago: Yes, it was a bit slower for sure. We've hit on some of this in the past, but when we think about some of the activity that we've seen over the past handful of years and some of the robustness in the deal activity, it's not surprising to see a bit of a pause, particularly as we're deep into 2019.
I don't know that we necessarily feel that's going to be the be all end all for the year but it's certainly a bit of a pause compared to some of those mega deals that were announced back in '16 and '17. There were even some in '18 but the fundamentals are still very strong. There's still a lot of necessary investment and capital needed in the power space, and there's a ton of opportunity.