LUTZ BUSINESS INSIGHTS
quarter two middle market m&a report 2020
As the COVID-19 pandemic continues to spread, Q2 2020 has registered a massive drop in M&A activity. The total value of lower middle market deals (transaction value less than $1 billion) announced in Q2 was $23.7 billion – 60.3% below the same period the year before. Volume, meanwhile, fell 24.3% year over year and 25.7% quarter over quarter to 2,340 deals. Compared to Q1 2020 when the impact of the pandemic wasn’t quite clear yet around the world, the collapse in dealmaking in Q2 was significant.
Much of the drop in the deal flow is attributed to the current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19. Many buyers chose to either abandon or postpone the deal process until they get more clarity into what the near future holds. Many M&A deals depend on financing availability, and now faced with an uncertain macroenvironment and tightening of credit markets, buyers are forced to restructure terms and levels of debt versus equity.
LUTZ BUSINESS INSIGHTS Lutz adds Tyler Hohenstein as Senior Accountant Lutz, a Nebraska-based business solutions firm, welcomes Tyler Hohenstein to its Grand Island office. Tyler joins Lutz’s tax department as a Senior Accountant. He is responsible for providing...
This week marks the 33rd anniversary of Black Monday, one of the most infamous trading days in market history. On October 19, 1987, the S&P 500 lost…
Fall is in the air, and kids are going back to school. For some of you, it may seem like you blinked, and last year’s school year had just ended…
SIGN UP FOR OUR NEWSLETTERS!
We tap into the vast knowledge and experience within our organization to provide you with monthly content on topics and ideas that drive and challenge your company every day.
13616 California Street, Suite 300
Omaha, NE 68154
747 N Burlington Avenue, Suite 401
Hastings, NE 68901