From the Sidelines: A look into Acquisition Trends (Q1/Q2)
PrivCo has analyzed the startup funding trends in previous posts, read here, here, and here. We will take a look at the M&A activities from 2019 to paint a more complete picture of the financial and strategic states of private companies.
Usually private company strategic transaction data come out at a lower frequency. However, given the uncertain time, we have compiled what we have seen so far. The data thus far has been illuminating. We have identified a few key M&A deal trends and summarized them here.
1, M&A deals count took a dramatic turn with Covid-19
2020 started with a record level of deals. However, we see a drop off in March. We theorize that dropoff is due to the coronavirus.
To verify our theory, we looked at the daily deal counts to get a more granular view. It is uncanny- the sharp dropoff indeed coincided with the SF shelter-in-place order on March 17th.
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2, Less PE deals, more dry powder
