Middle-Market M&A Activity Dramatically Increased Q4'2020; Valuations Remain High
M&A activity for middle-market companies dramatically increased in the 4th quarter of 2020. The number of M&As even exceeded pre-pandemic activity in the 4th quarter of 2019. Also, valuations rebounded from the lows during Q2-Q3'20 and are now near the highest levels seen in past 15 years.
See the Wilcox Investment Bankers' Mid-Market M&A Survey (March 2021) below, which documents middle-market merger and acquisition activity and valuation data through Q4'2020 (deal sizes ranging $10 - $250 million).
Bottom Line: Buyer demand for deals is high (lots of capital to deploy); supply of quality opportunities is low, valuations remain strong and taxes will probably go up. Many business owners are realizing that now is a good time to consider a sale.