M&A professionals: Prepare for a rise in deals

Survey shows optimism for transactions, valuations

 
 

Dealmakers await interest rate decline

 

Eighty-one percent of M&A professionals expect transaction activity to increase over the next six months as they anticipate decreasing interest rates and project optimism about the U.S. economy. After a two-year lull in deal activity, respondents to our M&A pulse survey are poised for an upswing.

 

 

Key Findings:

  • M&A leaders expect valuations to rise or stay the same over the next six months.
  • Technology deals could lead the way for a rise in transactions.
  • Alternative funding sources are likely to remain a key component of the deal environment.
  • More than half of respondents said the election in November will have no effect on their M&A plans.

Private equity transactions also could drive an increase in deal volume as many PE firms have investor funds that they need to deploy soon to avoid having to return funds to their investors. And almost half of M&A leaders expect to increase their team size over the next six months, indicating that they're expecting an uptick in work.

 

“The amount of sell-side work we’re seeing right now should translate into increased volume when these opportunities hit the market in the next couple of months,” said Grant Thornton Transaction Advisory National Managing Principal Elliot Findlay. “There are a lot of positive tailwinds right now, and the market is indicating that volumes will pick up.”

 

For full details on the M&A landscape, download our survey report.

 
 
 
 

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Brent Johnson

Brent is a Partner in our Transaction Advisory practice and has more than 20 years of business experience that includes assurance, financial advisory and interim management services

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Maxwell G. Mitchell

Max leads Grant Thornton’s Purchase Agreement Advisory Practice, having established the service offering for Grant Thornton in February 2019. Max previously performed the same work for Grant Thornton UK. Max has fourteen years of experience providing financial and accounting services to clients.

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