March 16 2021
The Swiss M&A market in 2020 suffered in the first six months, particularly during the first Swiss lockdown, where a decline was seen in deal flow and volume due to the impact of COVID-19, with some sectors deal activity down by 50%.
The uncertainty caused by the pandemic was particularly reflected in a decrease of approximately 42% in the number of inbound transactions and a 24% reduction in outbound transactions. However, in the second half of 2020, the overall uncertainty in certain markets was overcome and envisaged deals that were put on hold, were reassumed and closed.
As M&A activity normally directly correlates to the sector specific economic performance, this catch-up in the second half of 2020 was particularly visible in the technology, media and telecommunications sector (TMT). In total, M&A deal count with Swiss participation saw a decline of only approximately 10% for 2020 compared with a very active M&A market in 2019.