Actionable Ideas for Companies and Sponsors
European Mid-Caps Increasingly Turning to The Equity Markets For M&A and Growth Financing
European companies have issued $40 billion of equity in 2019 and small and mid-cap companies have been the primary beneficiaries, with over 90% of these transactions for companies with a market capitalization of less than $5 billion, and over 80% of these for companies with market caps less than $2.5 billion. As European equity investors generally demand low leverage ratios, we expect this trend of primary issuance to continue, as it provides companies with an important source of growth funding. The issuance activity has been diversified across sectors, but the healthcare (26%), real estate (24%) and TMT (21%) sectors remain the most active.