Skyline Advisors
  • Services
  • Team
  • Transactions
  • Industries
  • Reports
  • News
    • Capital Markets
    • Firm News
    • Resources
  • Contact
    • Newsletter

Partners for Strategic Transactions

May Capital Markets Review

6/5/2020

 

Capital Spent on Mergers and Acquisitions in May Falls to $12 Billion

​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.
Picture
​It has been well reported that the COVID-19 pandemic has significantly slowed business activity across the country. However, the pandemic has also had its effect on M&A deal-making activity in 2020. In 2019, the average month had 561 deals completed with invested capital of $91.2 billion. However, so far this year, each month has averaged only 486 deals and $66.1 billion in invested capital.
Picture

Venture Capital Investment Surges in May to Record Levels Resulting from Large Scale Deals

Venture capital investing activity took a sudden positive turn last month, despite the continued decline in deal counts. In fact, during May, there were 105 deals with sizes over $25 million and two deals over $1 billion. This led to a total of $16 billion invested across 841 deals during the month, representing a 48% increase in invested capital over the monthly average during the previous 12 months.
​
The largest deal of the month was Alphabet’s Waymo, an autonomous driving and artificial intelligence technology subsidiary. The deal was a $3-billion investment from a syndicate of VC firms. Other notable deals include SpaceX, Lime, Magic Leap, and MasterClass.
Picture

Private Equity Firms Complete Just 201 Deals in May

Picture
Along with corporate M&A transactions, private equity deal making has fallen off amid the COVID-19 pandemic. Deal count reached a twelve-month high in January of this year at 556, which compares to just 201 deals in May. Value was also the lowest since January of 2019, falling to $18.9 billion.
​
The slowdown in the American economy, along with its businesses, has left private equity firms with fewer buyout deals to pursue. However, the economic struggle has left many businesses cash-strapped and in need of a capital infusion.

The Job Market and Retail Spending Categories Begin Recoveries in May

  • Following two months of unprecedented payroll losses in the US economy, a record 2.5 million jobs were added to the economy, more than two times the previous record set in September 1983. However, 2.5 million jobs added pales in comparison to the 22 million lost in the previous two months. In fact, the unemployment rate changed only modestly from its record high 14.7% to 13.3%.
  • Retail sales experienced positive growth for the first time since February. Month-over-month retail sales grew 17.7% in May after shrinking by 14.7% in April. Much of this surge has resulted from changes in how consumers spend, namely the shift to e-commerce and delivery sales. Skyline Advisors recently published a brief article highlighting the changes in consumer spending behavior due to COVID-19, which can be found here.
  • The National Bureau of Economic Research officially determined that the US economy did fall into a recession at least during February, ending the record 128-month expansion since the financial crisis. The Bureau of Economic Analysis had already determined that the economy shrank by 5% in the first quarter of 2020. 
Picture

Comments are closed.

    Archives

    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    December 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017

    Categories

    All
    Auto Sales
    Bankruptcies
    Capital Markets
    Confidence
    Corporate Profits
    Debt
    Economy
    GDP
    Holiday
    Housing
    Industrial Production
    Inflation
    Initial Public Offerings
    Interest Rates
    Inventories
    Jobs
    Manufacturing
    Mergers And Acquisitions
    Middle Market
    Prices
    Private Equity
    Productivity
    Retail Spending
    Rural Economy
    Small Business
    Stock Market
    Taxes
    Trade
    Venture Capital
    Wages

    RSS Feed

Picture
​Skyline Advisors is a division of Ideation Ventures, Inc. Services involving securities are offered through M&A Securities Group, Inc.4151 N Mulberry Drive Suite 252, Kansas City, MO, 64116  (“MAS") . Services involving real estate brokerage are offered through Berkshire Hathaway HomeServices Ambassador Real Estate ("BHHS"). Skyline, MAS, and BHHS are separate entities. 
​

COPYRIGHT 2020. ALL RIGHTS RESERVED.
Virtual Data Room
Company   Services   Team   Transactions   Industries   Reports   News
Photo used under Creative Commons from inkknife_2000 (8.5 million views +)
  • Services
  • Team
  • Transactions
  • Industries
  • Reports
  • News
    • Capital Markets
    • Firm News
    • Resources
  • Contact
    • Newsletter