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Buyout Deal Values, Activity Plumment In Q2

Both the aggregate value and number of buyout deals in the second quarter of the year fell significantly compared to Q2 2019, according to Mergermarket's Global & Regional M&A Report 1H2020.

The aggregate value of buyout deals globally was $78.6bn in the second quarter, a drop of more than $100bn from $179.5bn in Q2 2019. In H1 2020, the total aggregate value of buyout deals was $210.4bn, $90bn down on H1 2019. At the deal count level, Mergermarket says that there were 1,318 deals done in the first half of this year, versus 1,853 in H1 2019, a drop of almost a third.

The story for exits followed the same trend. Only $33bn of exits were realised in the second quarter of 2020 compared to $139.6bn in Q2 2019. In the first half of the year, aggregate exit value was $136.4bn compared to $283.8bn last year, a -51.9% decline.

On the deals advisory side, UBS is the leader at the halfway mark this year, having advised on nine deals worth a total of $26.1bn. Rothschild & Co ($22,7bn) and Bain & Company (18.9bn) make up the rest of the top three. Goldman was the leader for US Buyouts with $7.1bn across five deals, UBS the leader in Europe with two deals accounting for $23.8bn and Bank of America led Asia-ex-Japan with three deals accounting for $2.3bn.

Exits-wise, Goldman Sachs is the global leader at the halfway mark in 2020 having advised on 12 deals worth $21.8bn with Citi and Morgan Stanley coming in second and third ($17bn, 10 deals and $16.6bn, 14 deals) respectively. Goldman was also the leader in US exits ($17.95bn across 6 deals) and came tied first with Grant Samuel in Asia-ex-Japan. Rothschild led Europe with $8.2bn across 19 exits.

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