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May 2020 Valuation Barometer - Deal volumes and valuations in April 2020

Our April data proves that COVID-19 has not stopped the M&A market in its tracks but deal volumes have been severely impacted. The virus has been appearing as the culprit for deal terminations and fundamental changes in deal terms.

During April, the takeover of UK-listed Moss Bros collapsed after the buyer invoked a condition that allowed its offer to lapse.  Whilst COVID-19 was not specifically mentioned, chances are that its impact on the retailer’s operations was behind the buyer’s decision to walk away.  Nanoco, the manufacturer of heavy-metal free quantum dots for lighting and medical applications, pulled its sale process after failing to receive any offers for the business.  Boston Scientific, which is in the midst of a takeover of BTG plc, announced COVID-19-induced changes to its post offer intentions regarding BTG’s directors’ employment terms.

On a more positive note, the Competition and Markets Authority (CMA) cleared the £2 billion sale of Arqiva’s telecoms division to Cellnex, a deal first announced in October 2019.

For the full report please email doug@marktomarket.io