Texas M&A: A Bottom-Heavy Market…For Now

No matter how you look at it, the vast majority of mergers and acquisitions involving Texas businesses and Texas lawyers involved transactions of $500 million or less, according to two different bodies of data from Mergermarket and the Texas Lawbook’s Corporate Deal Tracker.Source: MergermarketMergermarket shows that 77% of M&A deals involving one or more Texas businesses in 2020 were at or below the $500 million mark while the Corporate Deal Tracker showed that two-thirds of the M&A deals handled by Texas lawyers were below the half-billion mark; this, despite there were actually more transactions worth $1 billion or more than deals between $500 million and $1 billion.In addition, nearly half, or 48%, of all Texas M&A in 2020 had deal values between $25 million and $250 million, 43% were $100 million or less, and 18% were $25 million or less, according to the Mergermarket data.The figures show that sellers were increasingly willing to make concessions to buyers amid a weak market made weaker by the Covid-19 pandemic, according to Locke Lord partner Joe Perillo.“Finding a willing buyer is obviously a bit more difficult in this market,” Perillo, who is based in Houston, told The Texas Lawbook. “So what otherwise may have been considered…