Jimmy Frischling’s Post

Cautious optimism keeps the hope for a complete M&A recovery! Despite a flurry of deal activity in 2024, participants in the M&A market display cautious enthusiasm. In general, delays in interest rate cuts by major central banks and persistent inflation figures have made them cautious. Amidst a challenging scenario, private equity dealmaking has seen an increase of around 30% in terms of value. But the number of deals finalized has decreased. Dealmakers believe that the slow growth in private equity deals can be attributed to a mismatch in price expectations between buyers and sellers. Nonetheless, in view of a rockier political and economic environment, M&A professionals still see opportunities for growth. Additionally, the availability of significant amounts of dry powder with private equity firms could potentially lead to an increase in the number of deals in the market.  #KPMGElevate #KPMGValueCreation #KPMGDeals #KPMGInsights #M&A #Megadeals #Takeover #Merger #Acquisition #GlobalM&A #PrivateEquity #PE #Inflation 

Let's take a breather from Consumer Credit Card Balances, The Fed, NVDA's Market Cap, and the Election Talk. How about we drum an area of the market that has been very unpopular the last 12-24 months? The IPO market. Maybe the IPO and M&A market can give us a precursor of what may come within the next year. More deal activity and underwriting is a bullish sign for the market. IPO market is coming back. Slowly but surely. Fran Brzyski https://lnkd.in/e5cM3pS7

The M&A deal market is showing signs of recovery, and earlier than some expected. An uptick in Private Equity exits during Q1 2024 indicates a promising rebound in activity. Following last year's slowdown, this positive development is particularly welcome. PE firms, having been compelled to hold onto assets for longer than expected, now face escalating pressure to return capital to their lenders. This increase in successful exits, despite varying value levels, is set to boost investor confidence and paints an optimistic picture for the year ahead. #PrivateEquity #MergersAcquisitions #AlvarezandMarsal

M&A volume around the world slowed in 2023, with many businesses postponing dealmaking amid economic uncertainty, the Wall Street Journal states. Steeper interest rates meant that fewer buyers were willing to pay top dollar to acquire companies, and purchasers and sellers were often unable to settle on a price, bankers and M&A professionals said. Even so, US corporate earnings are increasing, and possible interest rate cuts in 2024 could revitalize M&A activity.

M&A rebounds? The U.S. M&A market is experiencing mixed results. While mega-deals are on the rise, the middle market is facing headwinds. Private equity remains on the sidelines despite ample capital. Get the full insights on current trends and what they mean for you: https://lnkd.in/d_7HKmFD #MA #dealmaking #financialmarkets

Although the notable activity has been megadeals, conditions appear to be improving for the rebound in M&A overall. "Boardroom confidence for dealmaking has improved on the back of strong earnings, potential interest rate cuts this year and an ebullient market." #mergersandacquisitions #transactions #investmentbanking https://lnkd.in/dt6H3gMa

Great first Quarterly report from Woodward Park Partners on the Middle Market. A few highlights: -M&A stalled in 2023; Middle market deal volume declined 26% YoY (and down 39% from 2021)  -Demand for smaller, strategic tuck-in acquisitions increased as sponsors focus on their current portfolio vs finding the next platform  -The historically low interest rates of the last decade likely a thing of the past -Non-bank lenders have been more aggressive in the new year. As a result, leverage multiples have increased, and pricing has declined  -Competition for deals remains high Anecdotally, we have heard from clients that Large Cap investors and have been driving down into the Middle Market, making the deal landscape more competitive than ever. Given sellers can be more choosey when finding their next sponsor, aligning with the right team, both from an executive and buyer perspective, is more critical than ever. #middlemarket #privatequity #economictrends

Dealmakers eye all-stock deals as US rate cut hopes fade "People are being a little more cautious about how they approach their capital structures" "Higher borrowing costs, a stringent regulatory environment and the trend toward de-globalization leaves many companies more cautious about undertaking large transformative acquisitions" TURN IN SENTIMENT Overall M&A volumes are expected to rise 50% in 2024, Morgan Stanley analysts said in a March report, largely due to pent-up demand from last year when volumes touched a decade-low

PE firms scramble to offload $3tn of assets. With IPOs sluggish and PE rivals cautious, buyout bosses are turning to corporate buyers. Valuations are still high, but strategics offer more flexibility and synergies. While the exit market shows signs of life, IPO hopes rise with UK listing reforms. LPs demand cash returns, pushing PE firms to get creative with exits. Interesting Article by Private Equity News https://lnkd.in/eZF7DPvu

Corporate Advisory Partner Brent Goldman speaks with ausbiz on the trends impacting Australian Mergers and Acquisitions (M&A) for the next financial year. Our Q4 report on mid-market M&A, shows that there is a downward trend in announcements, which has been observed over the past year. This trend mirrors the fluctuations dominated by macroeconomic conditions, such as interest rates and inflation. The situation is further complicated by the global political climate influencing upcoming elections, which can incite greater uncertainty in the markets. Watch the full interview here: https://bit.ly/4bBURpF #NexiaAustralia