How’s the deal flow in your respective industries? What are you seeing from a macro trend perspective? How much multiple compression are you seeing? Thoughts on the remainder of the year? Rebound in second half of year or continued downturn and will strategics and financial sponsors continue to take a wait and see approach? Curious to get other M&A practitioners thoughts.

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What are your perspectives on those questions?

likefunny

Have seen M&A budgets cut in half, even for highly FCF generative clients. Sponsor roll ups looking for distressed asset purchases to take advantage of market. We shall see. But even those deals are mostly financed by internal FCF and not so much levering up. Multiples down 30% YoY (healthcare, tech, and retail). Remainder of year I see things actually getting better. It seems companies are waiting to refinance because they think rates will decline. When that doesn’t happen, firms will be forced to refinance which should loosen credit markets and ultimately drive M&A.

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Spot on with what I’m seeing. I’m primarily focused on healthcare deals but in this market, I’m taking what we can get . I also agree that once the market gets confirmation from Jpow that rates hikes are done, cash will start moving and deal flow will pick up. Strategics with a strong BS are in the best position at the moment but time to close and failed deals are still significantly higher than the past several years.

Got an RFP for me/us?

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Objectively, isnt M&A activity down by like 30% in the US from 1 year ago?

Globally, M&A activity is down more than 40% compared to last year’s 1H

Base effects. Be careful BCG.

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