The one constant theme we’ve noticed in 2022 so far is market volatility. All industries have been affected by the constant evolution of the market caused by a number of factors, which add geopolitical uncertainty (e. g. the war in Ukraine, questionable elections, tensions between the US and the United States) and the United States. economic difficulties such as inflation and emerging market interest rates, and continued strain on supply chains. Public procurement has been unpredictable, the S
While M&A deal activity is down from record 2021 levels, in terms of price and volume, deal activity remains robust from an old perspective. It was inevitable that we would see a relief in activity from a record level, especially since 2021 was supported by from 2020, and during the first part of 2022, many buyers were busy integrating the transactions that were closed in the current part of 2021. In addition, we have noticed a slowdown in mega-deals in 2022, driven through the aforementioned points, as well as increased regulatory oversight and general caution on the part of control teams.
Fortunately, there is still significant liquidity in the market, especially with personal equity buyers raising record levels of capital in 2021, resulting in a dry dust buildup over the year despite record levels of money deployment. We expect commercial activity in the short to medium term to remain strong relative to old stocks and buyers to focus on countercyclical industries and strong control groups that can adapt to the complex market we are experiencing.
Activity in the M market
Transaction activity in the U. S. The U. S. economy has declined in recent months, after ending 2021 and early 2022. For the month of September 2022 it decreased considerably, with a decrease in activity of 17. 6% compared to the previous month.
So far in 2022, Columbus’ M&A market has faced the same hurdles, if not worse, as the broader U. S. M&A market. The same was in 2021. While the volume of transactions in September 2022 was 57. 1% lower than in September 2021. Still, Columbus has noted the end of several notable deals, adding acquisitions and divestitures. On the client side, Dublin-based Verdantas LLC made two acquisitions in the month, and Mansfield-based Mennel Milling Company made the strategic acquisition of Renwood Mills, LLC. Meanwhile, several local corporations have closed sales transactions, adding PerformanX Specialty Chemicals, Preventative Maintenance Medical, Inc. , Cochran Electric and Clarus R.
Offer of the month
On September 7, 2022, share-backed Verdantas LLC completed the acquisitions of JM Sorge, Inc. and Environmental Strategies.
Dan Bowman is a vice president of MelCap Partners, LLC, a middle-market investment banking advisory firm. To learn more about MelCap partners, visit www. melcap. com or email [email protected].
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