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.
The eventuality of a general slowdown in the economy and M&A activity, as well as a long-anticipated correction in valuations have caught up with Europe in the form of the global COVID-19 pandemic. Although the nature of the current crisis is fundamentally different to the global financial crisis of 2007-08, the European buyout activity has started to show an uncanny resemblance to the trendline recorded during the last crisis.
Private equity buyout activity enjoyed a robust start this year. 1Q20 buyout figures reached the third highest number in terms of deal count since 2001 with a total of 319 deals valued at USD 44.2bn. The quarter has been eclipsed only by 1Q18 (379 deals, USD 61.5bn) and 1Q19 (360 deals, USD 54.7bn) on Mergermarket record. After this strong start, LBO activity decreased steadily by count over the quarter, with only 88 buyouts announced in March, compared to 126 in January. PE buyout activity increased its share of the overall M&A investment into.