​In the second quarter, US venture capital investment was surprisingly consistent from previous quarters and actually topped the average over the last twelve quarters. This quarter we continued seeing the trend of fewer but larger deals, with volume in the second quarter falling 23% from the first to approximately 2,200 deals. However, overall value consideration during the quarter was $34.3 billion, a decline of only 4.5% from the first quarter but just a 1.3% from the quarter a year ago. This fewer-but-larger deal trend has progressed over the last five quarters now and signals that investors are more cautious with their funds but are simultaneous more willing to deploy capital into what they perceive to be high-quality companies with strong growth prospects.

​After four months of large M&A deals keeping invested capital levels afloat, capital markets experienced an absolute drop off in M&A activity. According to preliminary Pitchbook data, there were only 269 deals for a total of $12.2 billion, representing a 23% and 85% decline, respectively. Compared against the same period one year ago, May’s totals are roughly half.

Venture capital (VC) activity showed more money being invested in fewer deals during the first quarter (Q1), continuing a trend seen in recent quarters. Overall deal count slowed 18%, while aggregate deal volume increased 10% from the fourth quarter to $34 billion. With the onset of the coronavirus impacting markets and the economy in the latter half of Q1, VC activity is expected to show further slowing in the second quarter.

​Mergers and acquisitions have decreased – or at least paused temporarily - as the coronavirus has kept businesses shuttered and dealmakers at home or focused on other matters. Deal counts are down 54% since COVID-19’s most recent peak in January and invested capital figures have remained roughly constant. Year-to-date compared with 2019, deal count is down 11.4% and total invested capital is up just 4%. 

​Merger and acquisition deal count figures continued to slide in March as COVID-19’s impact unfolded across the United States. During the month, deal count totaled 433, representing a 25.9% decline from February, while invested capital grew 0.6% to $96.4 billion. For the first quarter, deal count is down 3.11% compared with 2019, while invested capital is up 5.06%.

​A handful of large-scale M&A deals kept total spending levels afloat in February, despite declining deal count figures. During the month, there were 691 corporate M&A deals, 25% lower than January, and $123 billion in spending, which is 14% greater than the month before. Moreover, median deal size and post-valuation figures are up 21% and 35%, respectively, month over month. 

​Skyline Advisors has released its latest Capital Markets Review: Midwest Edition for 2019. The report details activity and trends for mergers and acquisitions, private equity deals, and venture capital deals for both national and Midwest geographies. Key highlights include:

• Mergers and Acquisitions: M&A value declined from a record high in 2018, reaching $1.8 billion in 2019 across more than 9,000 deals.
• Private Equity: The total value of Midwest PE deals increased 38% in 2019 to $27 billion. Meanwhile, PE fundraising topped $300 billion for the first time ever during the year.
• Venture Capital: VC value and volume nearly topped a historic 2018, with $136.5 billion spent across nearly 10,800 deals. The year was a record for VC exits, with value from exits nearly doubling 2018’s amount. Midwest activity paralleled that of the US as a whole.
• Economy: The economy continued to grow in 2019, with real GDP increasing 2.3%. However, job openings fell at the fastest pace since 2009 in December, and the coronavirus is expected to affect economic growth, with the Fed already attempting to counter its effects by decreasing the Fed Funds Rate at the beginning of March

The complimentary copy of the full report, which also contains economic data and public market data of interest to owners and managers of middle market businesses, is available here.

Skyline Advisors has released its latest Capital Markets Review: Midwest Edition for the third quarter of 2019. The report details activity and trends for mergers and acquisitions, private equity deals, and venture capital deals for both national and Midwest geographies. Key highlights include:

• National M&A: Though total US M&A deal count declined 18% from Q2, the total value of deals increased 37% in the third quarter, reaching a value of $340 billion
• Midwest M&A: Total Midwest M&A value topped $25 billion through the third quarter, led by Mutual of Omaha Bank’s $1-billion sale to CIT Group
• Private Equity: Amid economic uncertainty, PE investors deployed less capital across fewer deals in the third quarter: both nationally and in the Midwest
• PE Fundraising: Fundraising among private equity funds nearly topped all of 2018, with $191 billion raised year to date through Q3 compared to $196 billion in all of 2018
• Venture Capital: Midwest venture capitalists deployed the most capital ($263 million) in a quarter since last year and across the most investments (51 deals) in a quarter in more than three years

The 14-page report also contains economic data and public market data of interest to owners and managers of middle market businesses. Access a complimentary copy of the full report here.

​According to preliminary data from Pitchbook, there were 752 M&A deals worth a total of $240 billion in July, remaining relatively unchanged from the $237 billion spent on corporate acquisition and leveraged buyout deals in June. Over 60% of the deal value is comprised of the buyouts of five target companies: Worldpay, L3 Technologies, Red Hat, First Data, and Array BioPharma. 

In June, there were 643 deals in M&A capital markets worth a combined $270 billion, the highest level since the start of the decade in 2010. However, 45% of that value is attributable to United Technologies’ blockbuster acquisition of defense contractor Raytheon. In fact, the deal is the largest since Time Warner acquired AOL in January 2001.