November 2019 – After falling for four consecutive quarters, M&A volumes in Q4 2019 look to be on track to record a modest increase. The overall picture shows a drop of almost 40 percent on last year’s record number of transactions. Whether Brexit uncertainty is causing acquirors and investors to hold off on investment activity will only become clearer next year, but it is certainly impacting valuation negotiations and influencing capital deployment strategies.
The drop is particularly noticeable amongst smaller, privately owned operators. With smaller cash reserves, regional operators are likely to be holding off on any major acquisitions until they have a better understanding of market conditions going forward.