Texas M&A Trends – Second Quarter 2020

Alerts / July 29, 2020

BakerHostetler will present data regarding Texas’ robust M&A market each quarter, with useful comparisons to the U.S. market overall. The alert focuses on M&A volume and value, identifies the most active industries, and includes market commentary from our Texas-based M&A attorneys.

M&A activity in the U.S. and Texas continued its decline, reflected by a significant drop in number of deals and deal value (although somewhat more modestly in the Texas market). Investor concerns about the mid- to long-term economic effects of the COVID-19 pandemic and related shutdowns decreased appetite for deal-making. Similarly, many investors are questioning how long-term business plans and investment theses may be challenged by potential social and consumer shifts caused by the virus. These existential concerns are compounded by the continued logistical hurdles of signing and closing transactions. The statistics reflect a potential bottom for U.S. and Texas deal activity in April 2020, with modest upticks in both May and June 2020. Anecdotally, both strategic and financial acquirers seem cautiously interested in resuming deal activity. But it remains to be seen whether these upticks are the start of a U- or V-shaped recovery or, unfortunately, do not reflect recovery at all.

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