MARKET UPDATE
138 M&A transactions closed last month, 15.4% lower than the average monthly transaction count over the previous ten years. As of October 31, M&A activity year-to-date is down 14.7% versus 2023. Cash on corporate balance sheets in North America was $7.2 trillion (USD). There was approximately $1.3 trillion (USD) of private equity dry powder, representing roughly $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.
M&A activity has remained subdued for the past two and a half years, which has built up significant pent-up demand, particularly within private equity. This pressure will likely drive a surge in deal-making as market conditions improve, with buyers and sellers eager to act when the timing is right.
VALITAS INSIGHTS
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