Optimistic Deal-Makers Ready for M&A Activity in 2021
In partnership with DHG, Middle Market Growth surveyed more than 600 M&A professionals on their feelings about deal-making in 2021. The good news is, despite a pandemic and uncertain political climate, most respondents felt bullish about deal-making in the coming year. Almost 75% of survey respondents said they had a positive outlook on M&A activity going into 2021. Although their reasoning varied, most respondents pointed to dry powder and favorable credit conditions. Private equity firms have more than $1.7 trillion of dry powder heading into 2021.
“For many businesses, COVID-19 has illuminated the need to remaster the basics of performance improvement in a world that demands extraordinary agility and adaptability.”
Managing Partner, DHG Private Equity
As far as working with portfolio companies, most deal-makers believe their time will be spent working on performance improvement, workplace re-entry readiness, financial assessments and liquidity analyses. Scott Linch, the managing partner of DHG Private Equity, says performance improvement is key to enhancing EBITDA and unlocking sources of cash flow.
This article is partially reprinted here with permission from Middle Market Growth.