Month-to-month fluctuations in the number of deals can easily be dismissed as short-term shifts, but Cyndx users know the current downturn follows months of falling M&A and capital-raising activity worldwide — the question now is will the nearly 40% drop in transaction volume correct itself once panic-inducing news items lose their momentum?
As highlighted in the Cyndx List, the monthly summary of global M&A and capital-raising activity, the recent market pullback is more than just a temporary reaction to the current news regarding health, economic, and geopolitical issues.
February 2020 has seen a steady decline of approximately 46% since acquisition volume hit its height in July 2019. The total number of deals is down from 3,027 to just 1,626. The average acquisition price was also down significantly, from $93.7MM in July 2019 to $61.9MM in February 2020.
Total global capital raising has also fallen approximately 53%, with the number of deals falling from 3,834 in February 2019 to just 1,789 in February 2020.
The trend indicates that this is not a knee-jerk reaction to one single event, but rather a steady decline which Cyndx users have been able to identify for months.
With this market adjustment, we expect to see increased activity as buyers look to take advantage of the market dislocation.
Reporting contributed by Colleen Gardner.
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