Pennsylvania (Central Pennsylvania and Philadelphia) regional M&A update: H2 2020

M&A activity in Pennsylvania bounces back in late 2020

After a quiet first half of the year, M&A activity in Philadelphia and Central Pennsylvania rebounded significantly during the second half of 2020, driven by:

• Continued reopening of M&A markets and increase in available debt financing
• Renewed confidence in industries highlighted by the COVID-19 pandemic (telehealth, transportation, groceries)

Regional M&A activity reflects nationwide trend

A total of 419 transactions closed in the Philadelphia and Central Pennsylvania regional markets during the second half of 2020 (H2 2020), up from the 281 closed transactions in the first half of the year. These transactions also marked a solid 24.7% increase from the 336 closed transactions during the same period in 2019.

In Q4 2020, M&A activity in Philadelphia and Central Pennsylvania experienced a substantial increase over the first three quarters of the year. This mirrored the trajectory of the U.S.’s overall M&A markets – with a total transaction value of $336.3B in the quarter, representing a 95.7% increase over Q3 2020 and total transactions with reported values increasing from 556 in Q3 2020 to 645 in Q4 2020.

Focus on health

Although the Consumer sector narrowly led the Philadelphia and Central Pennsylvania M&A activity, comprising 20% of the total deals closed, the largest transactions were in the healthcare sector.

M&A activity by industry

Source: S&P Capital IQ (February 2021)