MARKET UPDATE

97 M&A transactions closed last month, 40.7% lower than the average monthly transaction count over the previous ten years. As of August 31, M&A activity year-to-date is down 16.8% versus 2023. Cash on corporate balance sheets in North America increased to $8.2 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

Is your business saleable? Because your business is unique, it requires an objective assessment of its saleability. Ignoring this step is dangerous because a failed sale process has heavy costs. Click the link below for insights on how to drive the value and saleability of your business by increasing its attractiveness to potential buyers.