Global dealmakers: European M&A market update 2020

13 May 2020

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Mergermarket is pleased to present Global dealmakers: European M&A market update 2020, published in association with Baker Tilly International.
The spread of Covid-19 is causing dealmakers to reconsider or cancel investments into Europe, this after M&A already started posting a decline in the early months of 2020. Even as sentiments shift, respondents still agree that value can be found in Europe and that M&A opportunities are still abundant. However, it remains to be seen how many will put their plans into action as the pandemic and the spectre of recession weigh heavy on dealmakers’ minds.
This report explores the current challenges shaping the European 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: 73% of dealmakers say they are decreasing M&A in Europe due to the spread of Covid-19.
  • The spectre of recession: 92% of respondents say a recession in Europe will unfold within the next 12 months – and 100% say a global recession is imminent.
  • Global cross-border M&A to stall: 83% say Covid-19 will have a negative impact on global cross-border M&A through 2020 and possibly beyond.
  • Opportunities are still abundant: 18% say there are better mid-market opportunities in Europe compared to other regions globally and 87% say there is great and growing opportunity to make investments in European medicinal cannabis.