Edior’s note: Charlotte-based DecisionPoint Advisors publishes “The ViewPoint,” a summary of trends, stock index performances, public valuation multiples, and relevant M&A activity in the services, software, and communications sectors.
CHARLOTTE – M&A activity picked up in the third quarter from the lows in Q2 and Q1, with activity in July, August, and September jumping 80% from the previous quarter.
The rebound occurred as corporate and financial sponsors alike looked for opportunities in the middle market. Much of this increased activity is being pursued as firms jostle to take advantage of opportunities that the pandemic made apparent.
The November elections are also impacting deal makers, as the election will influence policy and another stimulus package that could set the stage for M&A in 2021.
One of the sectors with the largest increase was eHealth. There were 58 transactions in the thirds quarter, reflecting a 17% increase compared to Q2. The year-over-year growth in total deal value grew substantially from $9.56B in Q3 of 2019 to $20.08B in 2020.
The development is attributable to the frenzy around the COVID crisis and the need to deliver a new form of health care. Interest has been growing in telehealth opportunities as well as remote patient monitoring. It is expected that these new technologies will not remove the doctor’s office but supplement the practice’s ability to treat patients in innovative ways.”
This Quarterly ViewPoint covers trends, public valuation multiples, and relevant M&A activity for the software and services sectors. To illustrate general capital market and M&A trends within these sectors, DecisionPoint has selected a group of representative public comparables and transactions.
This data is provided for informational purposes only. All data represents publicly available information.
DecisionPoint is a unique leader in M&A advisory services for middle-market technology companies and their venture capital investors in the
software, services, and healthcare IT sectors.