European M&A had a strong start in 2020 before a dramatic fall in the second quarter, due to the coronavirus pandemic.
Italy’s M&A market has shown a slow down as expected, with an uptick in activity possible only from the end of the year. As for PE deals, new transactions will be less leveraged and financing conditions will probably be less favourable than in the past.
In Iberia deals are booming in the infrastructure sector, despite risks from the coronavirus, lockdowns and the lack of activity in other sectors. Renewable energy is particularly active in the infra space. One important factor is sovereign risk, which can alter multiples. Spain’s debt-to-GDP figure was approaching 100% before the pandemic, while Portugal’s had already crossed this threshold.
While Portugal fared much better than Spain with COVID-19, M&A activity was equally impacted. Many of Portugal’s businesses saw a sudden drop in revenue when the lockdown started in March, though many experienced a strong recovery in May and some deals on hold were reactivated.
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Join this live virtual briefing to hear from experts in the Southern Europe regions tackling the challenges of the current dealmaking environment. Panellists will discuss:
Italy and Spain have been severely affected by COVID-19. How has that affected M&A and what challenges are the sector/region going to see going forward?
What is going to drive recovery in Southern European regions?
Sector outlook: which will survive, which will thrive, which may not recover?
What steps are companies taking now to plan for the future? What lessons have they learned so far? What will help them going forward?
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