MARKET UPDATE
139 M&A transactions closed last month, 53% lower than the average monthly transaction count over the last ten years. As of February 28th, M&A activity year-to-date is down 51.2% versus 2022. Cash on corporate balance sheets in North America decreased by 14% from January to $1.9 trillion (USD). There was approximately $1.2 trillion (USD) of private equity dry powder, which represents approximately $2.4 trillion (USD) in latent acquisition capacity when debt funding is factored in. Global inflationary pressures continue to dampen investor sentiment. Uncertainty around interest rates and corporate liquidity has weakened valuations, driving M&A volume down.
VALITAS INSIGHTS
How do I assess my company's liquidity options? Valitas Capital 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 guide on understanding liquidity options, including insights into how to avoid the common pitfall of trapping your business' equity.
