Pacific Northwest Market Update
QUARTER 3 | OCTOBER 2020
Pacific Northwest businesses continued to show their resiliency in Q3 as they adapted to the new reality of the
COVID-19 pandemic. Compared to an understandably low second quarter, deal activity picked up substantially in July-September. The region saw 30% more deal activity than the previous quarter, foretelling the start of an impressive market rebound. We have seen that there is still a significant amount of capital in the market available for investment, and many strategic and ﬁnancial buyers have not lost their appetite for acquisition. In this update we will look at transaction ﬁgures by state, how the Northwest’s deal ﬂow compares to the nation at large, and how business leaders in the region are hopeful about the current economic environment.
Alexander Hutton Managing Director, Kent Johnson, gives his insights on the current state of the pacific northwest market in the third quarter, “During this current business environment in the shadow of the pandemic, M&A activity for in-person consumer segments such as travel, hospitality, retail, etc., has been almost non-existent. However, we are seeing that companies operating in other segments are receiving robust interest from buyers and investors. In most cases, there is little discount in pricing multiples. This makes sense considering there is still over $2 trillion of capital with PE ﬁrms, Family Office funds, and strategics sitting on the sidelines looking for investments to put their capital to work. With a large portion of business segments in trouble, and therefore less attractive for investment, there are fewer places for this capital to go. Conversely, those companies that are in attractive business segments right now are in the 'cat bird's seat' to take advantage of the intense competition among buyers.”
In this update we cover data and insights on: transaction counts and trends by industry as well as by state in the PNW region, region specific completed transactions, how the Pacific Northwest compares to the rest of the nation, and more!
To read the Full Version of the Q3 Pacific Northwest Market Update, click the link below!