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.
RECENT POSTS
The True Cost of Investing + Financial Market Update + 1.26.21
The stock market’s 10% average return was much higher than what could have been earned on a risk-free investment. Any investor that hoped to…
Accounts Payable Automation: 3 Ways QuickBooks Can Help
Did you resolve to pay bills on time in 2021? Do you have a plan to do that? If you are using QuickBooks, there are three ways you can use automation…
Quarter Three Middle Market M&A Report 2020
The lower middle market deals in Q3-2020 rebounded from the steep decline realized in Q2 when the spread of COVID-19 triggered global lockdowns and brought businesses to a standstill…
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.