Prairie Middle Market Perspective is a quarterly publication that provides our insights into the middle-market merger & acquisition and lending environments. Our clients find our Middle Market Perspective to be a valuable source of timely information on current and future M&A activity.
Overall M&A Market Commentary
Three months ago, at the end of 2019, we were celebrating the length of the “economic recovery” and the record 128 months of sustained economic activity since the end of the Great Recession. During January and February of this year, the strength of the United States economy seemed unstoppable and a growing number of economists were withdrawing their recession concerns and predicting continued growth through 2021. Some business analysts and healthcare experts were growing concerned with a new virus outbreak in Wuhan, China that could potentially impact U.S. companies that have a large amount of exposure to China, particularly if there is significant disruption to global supply chains. Until recently, U.S. companies were much more concerned about potential tariffs than a virus outbreak. When travel from China was restricted in late January, a number of lawmakers from both sides of the aisle suggested that the controversial travel restriction was unnecessary and “could do more harm than good.” Both Democrats and Republicans made statements in late February, based on information available at that time, downplaying the threat posed by the virus to avoid alarming the public. Shortly thereafter, the COVID-19 pandemic hit the U.S. and the virus spread like wildfire, first in Washington state, followed by New York City and other major metropolitan areas. It did not take long before the whole Nation was under attack by an invisible virus.
For additional insight on middle market M&A, valuation multiples, strategic buyer / financial sponsor activity, and more please download the full copy of the Prairie Middle Market Perspective.