M&A opportunities continue in the middle market.
While more than 25% of middle market CFOs said that mergers, acquisitions, and divestitures would be a core component of their 2021 growth strategy when we released the 2021 CFO- CHRO Sentiment Report in late January 2021, uncertainty led to cautious optimism. Now, with an increasing number of middle market enterprises continuing to explore acquisitions, divestitures and other transactions, deal activity in the second half of 2021 is expected to remain strong and is top of mind for many CFOs. While the pace of recovery has varied among companies and sectors, and some have faced fundamental changes as a result of the health crisis, US deal volume and value overall are up from 2020, according to a PwC analysis of Refinitiv data. And based on the pulse survey data captured from our CFO Alliance Members in Q1 and Q2 2021, we expect that 2021 middle market deal volume will outpace last year’s. Even as private and public company valuations remain high and a seller’s market continues, demand for high-quality companies, plentiful capital, and the increasing willingness of some owners to sell are accelerating deals that were thought to be years away.
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