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.
According to the US Energy Information Administration, US natural gas production and demand is expected to drop in 2020 and 2021 from record highs in 2019 as the government takes steps to slow the spread of COVID-19, cutting economic activity and energy prices. At the same time, Industry executives and analysts expect renewables business to continue to grow in 2020 and 2021.
The industrials space in chemical sector continues to enjoy robust M&A activities while automotive sector is experiencing massive transformations. On the other hand, many oil and gas companies are struggling to adapt to current, challenging markets. Factors such as growing interest in electric vehicles, supply chain risks, difficult investment environment are playing into the industry upward and downward trends.
Though the COVID-19 pandemic is expected to have a significant and long-term impact on all industries, the packaging industry had a low to moderate impact given its classification as “essential” in most countries. Limited disruption for companies serving customers with access to “essential” retail channels, facilities with high degree of automation, were some of the key trends and drivers of success for this industry during uncertainty.
TMT Industry is seeing a boost in the sales of audio books and podcasts and the increased use of digital payments app among the consumers. Also, enterprises may opt for private 5G networks, which offer enhanced customization for specialized work locations, speed from keeping data on site and reducing latency, and security.