Q3 2020 saw North American M&A volume of 2,714 transactions and total deal value of $361.1 billion.
Within the specialty distribution sector, there were 59 transactions in Q3 2020, compared to 84 transactions in Q3 2019, representing a 30% decrease from last year. The sector is on pace for 235 total transactions in 2020 compared to last year’s total of 345—a substantial decrease of 32% largely due to effects of COVID-19.
Public Company Performance
Public company EV/EBITDA multiples continue to increase with an average specialty distribution multiple of 9.9x in Q3 2020 compared to an average multiple of 9.0x in Q2 2020. The average EV/EBITDA multiple in Q3 2019 was 9.8x.
After Q3 2020, only one specialty distribution sub-sector (Building and Construction) has outperformed the S&P 500 over the past five years.