Jul 15, 2020 - Economy

Mergers and acquisitions picked back up in Q2

Reproduced from CB Insights; Chart: Axios Visuals

Big companies are quickly getting back to business as usual even as coronavirus cases continue to hit record levels.

What's happening: A recent survey of U.S. chief financial officers found the difference in outlooks between small and large firms over the next 12 months "is extreme."

  • Expectations at small businesses "have essentially collapsed," says Keith Parker, global equity strategist at UBS Research.
  • Conversely, more than 60% of large firms with sales over $2 billion expect sales growth to accelerate — 49% expect a "significant pickup."

In the world of M&A, deals started picking back up in the back half of the second quarter, data from CB Insights show.

By the numbers: VC deal activity rebounded globally and Asia saw the largest increase of the quarter, with activity rising 20%, compared to 9% in Europe and 3% in North America.

  • Deals in the U.S. rose after three straight quarterly declines and U.S. VC-backed unicorns rose to a new record of 209.
  • 69 companies raised funding rounds worth at least $100m in Q2, a new record.
  • IPO exits jumped 60% in the quarter.
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