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MARKET UPDATE

145 M&A transactions closed last month, 11.6%lower than the average monthly transaction count over the last ten years. As of February 29, M&A activity year-to-date is down 17.5% versus 2023. Cash on corporate balance sheets in North America increased to $6.8 trillion (USD). There was approximately $1.3 trillion (USD) of private equity dry powder, which represents approximately $2.6 trillion (USD) in latent acquisition capacity when debt funding is factored in. Global inflationary pressures and uncertainty continue to dampen investor sentiment and valuations.

Considering long-term private market M&A activity, our view is that we are currently experiencing mid-cycle conditions. The reported declines are driven primarily by peak M&A market conditions in 2023, rather than current market activity.

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VALITAS INSIGHTS

Why is your ideal lender out of reach? Valitas is focused on discovering and unleashing shareholder value. Every month, we feature content from our experienced team members that aligns with that focus. Click the link below for a snapshot of the vast private company lender universe, an analysis of the wide variations we see between lending proposals in our competitive credit arrangement processes, and insight into why most companies cannot exploit these funding opportunities.