Middle Market M&A Update - Q4 2020
Middle Market M&A Update - Q4 2020
Aggregate deal value for the quarter increased to $4 billion across 66 transactions. By comparison Q3 totalled $3.5 billion in aggregate deal value across 54 disclosed transactions. Increased deal volumes suggests that investor sentiment is increasingly positive, especially as the vaccine roll-out commences and economic normalization is expected.
Aggregate deal value for the quarter increased to $4 billion across 66 transactions. By comparison Q3 totalled $3.5 billion in aggregate deal value across 54 disclosed transactions. Increased deal volumes suggests that investor sentiment is increasingly positive, especially as the vaccine roll-out commences and economic normalization is expected.
Transaction volume during Q4 has remained slightly skewed towards more defensive sectors heavily exposed to COVID-19.
- Healthcare accounted for 20% of total deal volume, up from 19% in the previous quarter. Two deals were made by
acquirer WELL Health Technologies Corporation and two deals were made by CloudMD Software & Services Inc, out
of the 13 total health care deals, as virtual healthcare services have become attractive to industry players. - Industrials accounted for 14% of total deal volume. Canadian Pacific Rail Limited acquired Detroit River Tunnel Partnership for +$410 million, which was the largest deal in the quarter.
- Materials accounted for 17% of deal volume, down from 20% in the quarter prior, driven by a number of mining transactions.
- The Financials sector, which made up 2% of total deal volume in Q3, accounted for 7% of total deal value in Q4 with 5 deals closed. Uncertainty regarding performance of loan books, life insurance, and capital markets business has slightly subsided since previous quarters.
Insights
-
Performance
February 29, 2024
Create a Long-term Practice Plan and Protect What You’ve Built
Explore the three areas where SMARTPro can help you plan for the future.
-
Progress
February 29, 2024
Purchasing a professional practice during a global pandemic
Tips for navigating the changing world of professional practices from our experienced advisors.
-
February 29, 2024
Is your Credit Union Prepared for the Future
Digitization and evolving membership preferences are dramatically changing the financial services space. In this first part of our whitepaper series, we focus on three.
