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M&A Insights – Mark Young, Managing Director, CKS Advisors

Welcome to the March edition of M&A Insights 2018.  Our goal at CKS Advisors is to help you and your clients stay up-to-date on the current Merger and Acquisitions climate.

This month’s article is: The Middle Market Deal Comes of Age by Bloomberg Law.  https://www.bna.com/middle-market-deal-n73014473868/

The article highlights the forecasted landscape of Middle Market M&A activity in 2018:

Key Points:

  • A majority of survey respondents predict that the volume of merger and acquisition deals under $50 million will increase in the next 12 months, conversely approximately one-half of respondents believe that the volume of merger and acquisition deals between $50 million and $100 million will increase during that period.
  • In 2016, first-time private equity fund managers raised their highest levels of investable cash since 2009, with $8.6 billion raised, says Business Insider. Continuing in 2017, in the third quarter of 2017, private equity firms enjoyed their greatest fundraising quarter since 2014, seeing more than $62 billion flow into their funds.
  • Dry powder, or cash on hand, is at record levels. An unprecedented $963 billion in uninvested private equity capital is lying in wait for good opportunities, according to Bloomberg Businessweek.

Our two takeaways:

  • As you would expect, we continue to see high levels of activity in the middle market in the Arizona Market, both from Strategic buyers and strong Financial (Private Equity) buyers.
  • With high levels of capital available and significant amounts of buyers combined with a strong economy, it remains a sellers’ market.

Stay tuned for more brief updates on M&A activity in the future.