M&A Industry Set for More Capital, More Opportunity in 2022– May 03, 2022 by Jim Lisy

There’s no shortage of events focused on mergers and acquisitions, but the premier event this year was ACG Intergrowth® 2022. After a busy week at the Las Vegas conference, it was clear the M&A market is alive and well. Nearly 600 private equity professionals and more than 400 investment bankers attended, in addition to many attorneys, accountants and bankers focused on the market. Below are a few of the highlights we took away that leave us with a positive outlook on M&A in the near future.

  • Total assets under management represented by investors at the conference were in excess of $250 billion. There is a lot of capital looking for acquisitions, and valuations remain high from a historical context.
  • The deal market was very active last year and paused ever so slightly this year before resuming at a good pace. Shareholders of private companies considering a sale will find a very busy, and receptive, audience.
  • Many private equity groups at the conference were in the process of raising additional funds. Consequently, there will be even more capital chasing deals this year and beyond.
  • Family offices, groups established to manage an individual family’s wealth, were represented in greater numbers and represent additional capital sources. Many of these groups were seeking direct investment opportunities to supplement their positions with private equity groups. Sellers should consider this group along with traditional strategic buyers and private equity firms.
  • Add-on acquisitions, which are those made by private equity portfolio companies, were a big topic of conversation. Investors are looking to grow their investments through acquisitions. Growth translates into higher valuations and provides shareholders of smaller companies with liquidity alternatives.
  • Given the number of potential acquirers, finding the right one will continue to grow in complexity. Private equity groups target different industries, company sizes and transaction types. Professionals assisting their clients must manage this complexity to serve clients and provide value.

The current M&A market is healthy despite recent rumblings in the public markets. Things can change quickly, but, for the time being, the market will enthusiastically welcome shareholders seeking liquidity for their private investments.

Contact Jim Lisy at jlisy@cohencpa.com or a member of your service team to discuss this topic further.

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Cohen & Company is not rendering legal, accounting or other professional advice. Information contained in this post is considered accurate as of the date of publishing. Any action taken based on information in this blog should be taken only after a detailed review of the specific facts, circumstances and current law.