M&A Activity in 2020

By Generational Equity


Recently Mergermarket and Datasite released their analysis of M&A activity so far in 2020. Even though by most accounts COVID-19 has impacted transactions overall, it is still remarkable to consider just how popular North American companies (U.S. and Canada) are with buyers all around the world. Here is how their report described this year:

Inevitably, M&A activity was heavily impacted by the Covid-19 pandemic that had such dramatic effects on markets worldwide during the first half of 2020 — and particularly in the second quarter. However, North America recorded 2,435 M&A transactions during the first half of the year.

And, also according to their analysis, over 31% of the world’s acquired companies so far in 2020 were headquartered in the U.S. – by far the largest percentage of deals closed:

M&A Deals by Geographic Region

Source: Mergermarket

When you look at the data presented above, even though Mergermarket data is extremely comprehensive, keep in mind that no M&A source receives info on 100% of all deals announced or closed. So, it is entirely likely that the actual number of U.S. based businesses that were acquired in 2020 so far is substantially larger than 2.4K.

In fact, based on what we have seen with our clients the last three months, buyer interest and activity has never been higher. August saw Generational close more transactions than ANY month in our company’s history – ever!

Despite what you may be hearing, the reality is buyers are still very active in our niche, the middle market (typically transactions valued below $100 million). We have had the privilege of helping well over 1,000 business owners transition into the next chapter of their lives.

There is a good chance we can do the same for you.

The following links will provide you with additional information about our growth and exit planning conferences, how to attend one, and how to contact us for more information. Do not wait – the M&A market is really heating up:

Carl Doerksen is the Director of Corporate Development at Generational Equity.

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