Capital Markets Update | December 2020

Middle Market M&A Rebounds in Q3

In our Q3 2020 Capital Markets M&A Update we take a look at what drove the strong rebound of middle market M&A activity from Q2, as well as what we expect approaching 2021.
Included in this report:

• Strategic buyers displayed a return to growth strategies as revenue visibility improved
• Accelerated shift toward higher quality borrowers as lenders seek to add safety to their loan portfolios
• Private equity returned to more traditional buyout activity, often capitalizing on distressed assets at attractive valuations
• Capstone expects a significant level of pent-up demand to come to market in the near term, lending to a healthy M&A environment
• M&A activity is expected to continue to improve in the upcoming quarter and into 2021 aided by 3 key factors