Navigating M&A in Uncertain Markets
In 2008 due to the financial meltdown, IPO’s came to a screeching halt but noticeably M&A hummed along in 2009, 2010 and came roaring back from 2010 onwards. M&A has always been a resilient product and while the current economic environment has its challenges, there are many positive tailwinds, more so than in prior downturns which will continue to bolster M&A.
These include records levels of capital at PE and Strategic, rapid digital transformation of industries, emergence of non-technology buyers purchasing technology companies, valuation reset making transactions more attractive for certain buyers and innate driver of M&A being an attractive tool for inorganic growth for strategics or equity appreciation for PE firms. Having navigated various downturns (2001, 2008) and having closed 13 transactions since Covid with several additional mandates slated to close, Allied Advisers wrote this post on “Navigating M&A in Uncertain Markets” to serve as a guide for founders, management and executives when they consider M&A.