Middle-Market M&A Shows Positive Signs in Q3'20
There were many positive signs for mid-market mergers and acquisitions during Q3'20. Activity increased substantially compared to Q2'20 and valuations remained high. See Wilcox Investment Bankers' Mid-Market M&A Survey (December 2020), which documents middle-market merger and acquisition activity and valuation data through Q3'2020 (deal sizes ranging $10 - $250 million).
Bottom Line: Buyer appetite is very strong. Demand from buyers is much higher than the supply of deal opportunities. Anecdotally, we receive 30-50 solicitations per month from buyers wanting to review our deals. Forward-looking economic indicators generally point to growth in 2021. The Fed, lender activity and low inflation/interest rates are very supportive for M&A. A business with reasonable financial performance and prospects will generate much buyer interest and strong valuations now and into 2021.