The global economic uncertainty caused by Covid-19 continues and
as expected, M&A market activity has slowed. Following a
three-fold increase in the annual volume of spin-offs and
carve-outs since 2016, total buyout volume in the first half of
2020 dropped 23% annually. However activity is
expected to pick back up again, led by private equity firms.
PE ready for bargains
PE firms had a lot of dry powder going into the pandemic and
their focus is now turning to potential carve-out deals in
distressed industries such as aviation, hospitality and real
estate. Companies in these sectors are poised to offload non-core
products and brands as they try to shore up their balance
sheets.
