Industry M&A updates
COVID-19 implications for M&A activity
Developed by Deloitte Corporate Finance and released on a quarterly basis, these updates provide an overview of key marketplace trends and mergers and acquisitions (M&A) transactions, including industry analysis and a reference list of publicly traded companies.
- COVID-19 and the US middle market
- Consumer products M&A update
- Energy M&A update
- Financial services M&A update
- Industrials M&A update
COVID-19 and the US middle market: Implications for M&A activity
Deloitte Corporate Finance provides a perspective on how COVID-19 might impact middle market M&A, and more importantly, how operators in this market might proactively prepare for what could become a protracted period of uncertainty. At the very least, this period should push businesses to evaluate contingency plans in the face of disruption.
With an increased frequency of consumers turning to online retailers, consumer connections with businesses have become crucial, forcing marketing and strategy experts to shift their focus to appeal to this new generation of consumers to foster customer loyalty and create recurring revenue streams.
The pace of use of renewable energy is not expected to be fast enough to offset the effects of economic and population growth, and countries like the United States and China are showing renewed interest in coal. On the other hand, crude prices rose to above $60 a barrel in December, rallying over 10 percent, primarily driven by a Saudi-led effort among the organization of the petroleum-exporting countries, Russia, and other allies to scale back output.
The banking industry has witnessed great consolidation activity in 2019, and de novos will continue to take advantage of an industry rife with consolidation. Also, global and US economic growth continues to slow down heading into 2020, while the liquidity and asset quality of US banks are expected to remain in good shape.
The industrials space has seen a year of mixed results, since defense, engineering, and construction are expected to see continued growth, while aerospace and manufacturing has shown signs of contraction in growth. Also, oil, gas, and chemicals majors are expected to continue diversifying into cleaner energy sources, while power and utilities companies are enhancing their portfolio of smart energy solutions.
The global packaging industry is expected to see continued growth in many of its sectors, such as molded fiber packaging, protective packaging, polyethylene terephthalate packaging, and the pharmaceutical packing market. Growth in many of these sectors can be fueled by increased need for more durable and environmentally friendly alternatives for packaging solutions.
Industry is seeing a boost in the sales of new technologies like professional service robots and artificial intelligence chips that are coming into the market. Additionally, the Internet from space satellites may drive the price point lower for wired and fiber broadband providers.