Despite the challenging market conditions precipitated by the COVID pandemic, IMAP had yet another successful year in 2020, closing 218 M&A transactions valued at over $12.5 billion, only a slight decrease from the all-time high of 235 transactions closed in 2019. Transaction volume was down about 50% in Q2 2020 due to the global shock to market confidence and the restrictions on travel and in-person meetings, but transaction activity bounced back significantly in the second half of the year as paused deals were reactivated, well-positioned buyers and sellers ventured back to the market and deal makers adapted to the new environment.
In fact, Q4 marked IMAP’s strongest quarter ever, with 83 deals closed worth more than $4 billion. Momentum is carrying over into the first half of 2021, and the outlook remains cautiously positive, given that many of the factors sustaining deal activity in recent years remain, including access to easy financing and a record amount of dry powder held by investors.
Technology, Industrials, Consumer & Retail and Business Services were the most active sectors within IMAP in 2020, accounting for 45% of total deal volume. Roughly 30% of IMAP’s transactions were cross-border, which is consistent with previous years and reflects the organization’s truly global nature. Deal activity by region also reflects IMAP’s broad global presence, with nearly 40% of its deals involving a target company in Western Europe and another 21% in North America. Significant deal activity was also registered in Scandinavia, as well as in Central and Eastern Europe. Deal activity in Latin America and Africa was more subdued however, due to the public health crisis and limited buyer interest from abroad. A quarter of IMAP transactions in 2020 involved Private Equity firms.
Looking ahead, IMAP is poised to continue providing superior advisory expertise and global reach where opportunities surface. Jurgis Oniunas, IMAP Chairman, said: “IMAP is a growing and dynamic international mid-market organization, whose team of 450 M&A professionals in 43 countries is united in their mission to provide the highest level of service to their clients, with the same consistent level of quality and personal commitment wherever they might be. Our teams’ performance during one of the worst economic shocks in the post WW2 era is remarkable, not only due to their high level of success, but also for their persistent willingness to go the extra mile for their clients and their partners around the world under extremely difficult and constantly changing circumstances - that’s the true power of the IMAP partnership.”
>> Click here to read the 2020 IMAP Annual Review - Revised