02/11/2020 - News
Clearwater International witnesses Q3 2020 rebound in M&A activity first-hand
Data produced by MergerMarket and Refinitiv for mid-market M&A in the third quarter of 2020 placed Clearwater International firmly in the top 20 Pan-European financial advisors league tables.
Whilst deal making went on hold across the globe in the second quarter of 2020, Q3 2020 marked a rebound in M&A activity which saw an 80% increase in transactions. Vendors are encouraged by the continued appetite for M&A by both strategic buyers, with valuations holding up and, in some sectors, - particularly TMT and business services - increasing substantially.
Clearwater International has completed 88 transactions totalling €5.7bn in deal value
Since the beginning of 2020 Clearwater International has completed 88 transactions totalling €5.7bn in deal value, a reflection of the busy period the business has experienced throughout the lockdown period. Over 50% of completed transactions crossed the line since lockdowns were enforced indicating a confidence in the market amongst those sectors that have remained active.
Over 50% of the transactions completed since COVID-19 have involved private equity
Over 50% of the transactions completed since COVID-19 have involved private equity both investing in new business and exiting portfolio businesses, a positive sign of the high levels of dry powder accessible to fuel businesses across Europe.
Clearwater completed deals across a variety of sectors with only one rescue deal to speak of. The most active sectors throughout COVID-19 have been TMT, consumer, healthcare and business services, all sectors with key markets supporting the economy and the new world created as a result of COVID-19.
Michael Reeves, CEO of Clearwater International commented:
“The Clearwater team have remained agile and dedicated to achieving client goals in a challenging period. The levels of activity in the M&A market during Q3 has increased exponentially which has been reflected in the successes of our teams across Europe both in terms of new business and deals completed. We recently welcomed our Swedish team to Clearwater and announced our strategic partnership with KeyBanc Capital Markets which is strengthening our foothold in Europe and presenting unique opportunities for clients. We remain confident in our clients’ objectives and hope to present another successful year come the end of 2020 in the midst of an ongoing global pandemic.”