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TransactionWatch – Week of April 27th – May 1st

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This Week’s M&A Overview

Consumer card spending remained low throughout the month of April, which has negatively affected many payment companies within this industry. While COVID-19 continues to shake up our economy, M&A activity has been largely impacted across all industries. M&A levels on a global scale have declined in the first quarter of 2020, which has been apparent in the merchant acquiring space. Many companies are putting their efforts into strategizing their internal operations and striving to reach some level of revenue during this ongoing pandemic. Investing the time and resources into acquisition targets have since largely been put on hold as many companies seek to narrow any unnecessary expenses and risks during this time, however, discussions are continuously ongoing.

COVID-19 has brought added challenges to the deal making process which has affected the timeliness and success rate of a deal moving forward. In addition, buyers are ensuring that proper due diligence is being taken and assessing how the crisis has affected the seller’s business and overall valuation.