Last year turned out to be another strong year for M&A activity in the U.S. Among mid-market leaders the prevailing sense is that the backdrop for 2020 is favorable, but the urgency to get deals done has ticked downward. We saw nuances in this year’s outlook which suggest that the year ahead could be one of comparative restraint for M&A deals:
The press may talk of an impending economic slowdown, but mid-market leaders do not appear to be convinced
43%Remain the same
With a solid economic outlook, businesses expect to grow more through organic strategies than through acquisitions
Valuations remained strong through 2019, and mid-market leaders are expecting more of the same for 2020
In an environment of high valuations, it might seem surprising that the sellers’ pool has shrunk
Just under half of mid-market leaders are considering selling in 2020—18% fewer than a year ago
Just over half of mid-market leaders are considering buying in 2020—16% fewer than a year ago
The majority of sellers and buyers indicate they are likely to hire an advisor if they engage in M&A activity this year
Citizens Capital Markets provides highly customized financial advisory solutions to leading middle market companies across a focused set of industries. Clients within industrial, business services, consumer, healthcare, technology and transportation verticals benefit from our tailored approach to mergers and acquisitions, capital raising, financial restructuring, financial opinions and other valuation services.
As a part of Citizens Financial Group, Citizens Capital Markets is able to leverage the strength of one of the oldest and largest financial institutions in the U.S. to accelerate the delivery of valuable ideas and execution capabilities beyond what a traditional M&A advisory firm can do.
The survey was conducted among U.S.-based middle market businesses ($50MM to $3B in revenue) that are currently engaged in or open to mergers and acquisitions activity. Core sectors included healthcare, technology, industrial, consumer services, B2B services, transportation and other industries.
528 business executives directly involved in decision-making related to mergers and acquisitions (Owners/Partners, CEOs, Presidents and other C-level and Directors) completed a 15-minute phone or web-based survey between November 14, 2019 - December 6, 2019.
© 2020 Citizens Financial Group, Inc. All rights reserved. Banking products and services are offered by Citizens Bank, N.A. Member FDIC. Securities products and services are offered through Citizens Capital Markets, Inc., Member FINRA, SIPC. Citizens Bank & Citizens Commercial Banking are brand names of Citizens Bank, N.A. Citizens Capital Markets is a brand name of Citizens Financial Group, Inc.