MARKET UPDATE

119 M&A transactions closed last month, 27.2% lower than the average monthly transaction count over the previous ten years. As of September 30, M&A activity year-to-date is down 16.7% versus 2023. Cash on corporate balance sheets in North America was $7.4 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.

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VALITAS INSIGHTS

Are you thinking about selling your business now or in the future? Will you sell to a Strategic Buyer or a Financial Buyer? 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 pros and cons of different types of buyers, and a list of what you should consider when choosing a potential buyer.