Deal Flow Report: No. of transactions down but $$ volume sets new record

Independent business networking company MountainWest Capital Network (MWCN) has released its 26th annual Deal Flow Report. Despite the number of transactions being significantly lower because of the COVID-19 pandemic, Utah reached a new historical high for the value of financial market transactions, which includes public and private deals, as well as mergers and acquisitions.

The report is an in-depth analysis of the equity-related financial transactions that shape the state’s business environment and is published annually by MWCN.

The pandemic’s impact on Utah businesses in 2020 meant that only 289 deals were tracked during the year, a significant drop from 474 in 2019 and 483 in 2018. However, the total value of those deals was $26.4 billion, a rise from $25 billion in 2019. Major deals that anchored the year and garnered national headlines included the sale of Ancestry.com for $4.7 billion along with the sale of the majority stake in the Utah Jazz and its related assets.

“While 2020 was a year few people would like to repeat, it is encouraging for the future to note that the total value of deals in the state was the highest we have ever seen,” said Kady Reese, MWCNs Deal Flow vice chair. “This report provides a first-hand glimpse into what has continued to make Utah one of the best places in the country for innovation and success.”

Technology and software continue to lead across the state in raising funds, accompanied by increases in overall transaction value for consumer retail and healthcare. Key indicators in other sectors point to a broad diversifying of Utah’s industries and a strong pipeline for funding in the future.