Middle Market Mergers and Acquisitions by Colonnade Advisors MM M&A 023: The Market is Hot - Is it Time to Sell?
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Feb 3, 2022 The discussion highlights the bustling M&A landscape driven by private equity's capital surge and impending tax changes. Key strategies for business owners looking to sell or exit highlight the importance of timing and leveraging partnerships. A focus on growth equity reveals its rising prominence as businesses seek expansion funds. The challenges facing smaller firms in a consolidating market emphasize the need for strong financial backing. Insights on maximizing company value unveil essential approaches for navigating the current opportunities.
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Record Deal Volume Pushed Multiples High
- 2021 saw record M&A volume and high multiples driven by intense competition for deals.
- Excess capital from sponsors and SPACs pushed average multiples to about 10.2x across sectors.
Dry Powder And SPACs Fuel Competition
- Massive private equity dry powder and SPAC capital created strong buyer competition.
- That competition increased valuations and urgency to deploy capital into attractive deals.
LP Allocations Keep Feeding Private Markets
- Limited partners are increasing private market allocations, sending more capital to PE funds.
- That trend will sustain deal demand even if public markets slow down.