Private equity is creeping into the role typically taken on by traditional financial institutions like credit unions and banks: business lending. The Wall Street Journal estimates PE firms loans to midsized business jumped from $300 billion in 2012 to over $500 billion in 2017 and this trend is expected to continue. Private equity firms, like …
Tag: private equity
M&A 2018 Outlook: Middle Market On Track for Robust Year
Strategic buyers and private equity investors look to the middle market in 2018. Building on 2017 activity, all signs point to robust activity for middle market deals in 2018. Compared to 2016, average deal size in 2017 decreased by 16% while deal volume increased by 14% in the US. Growing interest in the middle market …
M&A Today: Smaller Deals Are on the Rise
Acquirers are favoring smaller acquisitions over mega deals. If you were to compare M&A in 2017 to previous years, you might think that dealmaking is declining, but a closer look at the data tells a different story. Although announced US deal value decreased by 16 percent in the first half of 2017, the number of …
5 Ways Minority Interest Helps You Grow
Private equity firms are increasingly acquiring minority interests in public companies in order to grow, according to the Wall Street Journal. The landscape for PE is changing. Firms are facing tough competition from strategic acquirers who have cash on their balance sheets and are typically willing to spend more on an acquisition. At the same …
What Is Happening with Valuation Multiples Today?
In 2015, record valuations drove a boom in mergers and acquisitions activity, leaving many to wonder when the deal bubble would burst. In 2015, US buyout firms paid an average of 10.3 times EBITDA compared with the previous record of an average 9.7 times multiple in 2007. Despite hitting a peak, valuations are still expected …
What will happen in M&A in Q1 2016? Dealmakers Weigh In
As we near the end of the fourth quarter, everyone is wondering what will happen in 2016. Will the frenzied M&A activity of 2015 continue into the new year? There seem to be mixed reviews on what activity will look like next year. The Intralinks deal flow predictor indicates a 7% increase in global M&A …
Strategic vs. Financial Acquisitions – What’s the difference?
I decided to answer a very basic, but important question about M&A, given that we often talk about strategic acquisitions. Q: What’s the difference between a financial and a strategic buyer? A: A financial buyer brings little inherent value to the transaction. Typically they bring capital and capital allocation knowledge, but usually no specific knowledge …
Strategic Acquirers at an Advantage in Today’s Market
If you’re strategic acquirer, 2015 will be a good year for you. In 2014 we started to see companies, especially strategic acquirers be more aggressive about M&A. This likely will continue and even accelerate in 2015, especially since many still have a record amount of cash on their balance sheets. While we’ve had a pretty …
PE Deals Slowly, But Steadily Increase
Last quarter, we predicted there would be a wave of deals in the private equity sector in the coming months. While we may not have seen a “wave” of transactions, deal volume has slowly, but steadily increased in 2013, according to GF Data. While the number of PE deals has not reached a 4Q 2012 …
Can We Expect More Private Equity Transactions?
Neiman Marcus has been sold by private equity groups TPG and Warburg Pincus for $6 billion to Canadian PE firm Ares Management and Canada Pension Plan Investment Group (CPPIB). TPG and Warburg filed for an IPO earlier this summer but kept their options open, Forbes reports. This transaction is not really surprising given the conditions …
- 1
- 2
