Pursant traditionally starts finalizing its view of the previous quarter's deal environment thirty days after a quarter ends when there is more clarity of data and greater visibility into what is to come. However, due to uncertainty, with zero visibility into the state, direction or pace of deals, Pursant spent April and May processing the impacts of the health crisis on M&A and the recession to follow.
The conclusion is that while there are normally winners when the market turns, there were very few winners resulting from this crisis. However, as we now move to the back side of the pandemic, we see that the chess board has been reset with parties that either stand to gain from the new market. In regards to future predictions, Pursant sees fatigued business owners becoming motivated Sellers, and borrowing costs for deals will remain low, but we will see more conservative M&A borrowing behaviors.
Here are a few more top takeaways from Q1 2020:
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