M&A MARKET UPDATE December 2020 U.S. QUARTERLY REVIEW
Notable Trends in December 2020
Year-over-year, deal count and capital invested decreased by 24.3% and 38.1%, respectively. However, when compared to the previous month, capital invested and deal count increased by 14.0% and 61.3% respectively. Median deal size in the U.S. increased 6.4% year-over-year but is down 40.9% compared to November of 2020. The EV/EBITDA median has decreased by 27.9% in December compared to last month. The month-to-month decreases across the board in deal count, capital invested, EV/EBITDA and deal size show how investor sentiment is starting to stabilize off record highs in November. Some investors believe further stimulus from the Democratic Party will help buoy the middle market, while others are still skeptical of the lasting effects of the pandemic.