Written by: John D. Hawkins
Senior Vice President, Paramax Corporation
Paramax Corporation is a member of Globalscope Partners Ltd. (www.globalscopepartners.com), an international M&A network with 55 firms in 48 countries. Globalscope is a leading group of corporate finance and business advisors supporting clients in domestic and international transactions. Globalscope’s focus is on M&A and managing the diverse issues arising in the implementation of business growth, reorganization, and realization strategies whether through divestment, acquisition, restructuring, or international joint ventures.
In a typical year, the members of Globalscope Partners Limited meet twice at various locations around the globe to discuss M&A industry trends and expectations by region, by country, and throughout the world. This year those conferences have temporarily turned to a virtual format.
In mid-October representatives from 55 member firms from 48 countries, including Paramax, met virtually over a period of days. Members participated in a series of robust conversations which included topics such as:
- COVID-19: Understanding the Global Impact on M&A Markets
- Transaction expectation for 2021 and beyond
- Specific deal flow activity in the TMT, Life Sciences, Business & Financial Services, Industrials, Renewables, and Consumer sectors
- Investment Banking best practices
At the completion of the conference, the general consensus from vast majority of members was that while there was a short term “slow down” with in-progress transactions very few transactions had ultimately terminated as a result. Conversely, many members, including Paramax, also pointed out a number of transactions had accelerated in pace and in some cases deal size increased as certain industries such as the “do-it-yourself” industry experienced significant and sustainable increases in revenues and profits.
In late 2Q and beginning of 3Q the majority of members indicated deals which were not highly-leveraged deals had returned to pre-Covid levels and pace. Highly-leveraged deals also saw an increase in pace however not to the extent of deals with lesser demand for leverage. In general, members were extremely optimistic about not only current deals but the future as they believe 2020 has caused many to re-examine their exit strategy.
Globalscope’s next conference is currently scheduled for April 2021 and will be held in Munich, Germany.
Paramax is one of five investment banking firms in the United States selected to join Globalscope Partners Limited. In addition to supporting members’ clients in cross-border transactions, Paramax, along with its US Globalscope partners, collaborate in support of each other’s domestic transaction activities. As a combined group Globalscope’s US partners alone, including Paramax, represent an estimated 80 registered investment bankers.
Globalscope’s focus is on M&A and managing the diverse issues arising in the implementation of business growth or reorganization and realization strategies whether this is through acquisition, divestment, sale, restructuring, joint ventures or licensing initiatives. Globalscope was founded in 1987 when a small group of entrepreneurial corporate finance and business advisers came together to support clients in cross-border transactions. Today, the advantages of access to the Globalscope network of more than 600 investment banking professionals include:
- Local contact points throughout the world at a moment’s notice
- Availability of an additional expanded database of international companies, with direct personal access to senior executives
- 55 member firms, 48 countries, 7 continents
For more information of Globalscope Partners Limited, please visit www.globalscopepartners.com.