Global dealmakers: North American M&A market update 2020

28 July 2020

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Mergermarket is pleased to present Global dealmakers: North American M&A market update 2020, published in association with Baker Tilly International.
Since Covid-19 began sweeping the globe, declines in North American M&A have been swift, with deal totals in the first half of 2020 sinking to some of the lowest in recent memory. Investor sentiment has sunk with it and most participants in our research say they are putting M&A on hold until the Covid-19 crisis is resolved. While most respondents say they will be decreasing investments into North America in the year ahead, there are holdouts who say they will stay the course or even increase deals, aware that the pandemic is only temporary and hopeful that North America will recover strong.
This report explores the current challenges shaping the North American M&A market in addition to the main drivers behind cross-border deals and key markets where opportunities can be found.
Key highlights include:
  • Pandemic shapes M&A intentions: 55% of dealmakers say they are decreasing their M&A in North America due to the spread of Covid-19.
  • Deal drivers: 83% say distress-driven M&A will be the top deal driver in the year ahead, followed by favourable valuations (75%) and private equity buyouts (70%).
  • Private equity in the spotlight: 48% say the level of private equity activity will increase over the next 12 months.
  • November elections: 47% say the upcoming US elections in November will have a negative impact on M&A.