MergerLinks’ Post

Ramsey Goodrich and Terence Hannafin represented CMG at the 2024 M&A East conference, hosted by ACG Philadelphia, where over 1,000 private equity groups, investment banks, and lenders gathered to discuss deal flow, market trends, and the future of M&A. After numerous conversations with fellow attendees, we distilled several key insights that reflect the current state of the market for middle-market M&A. Add-On Overload: M&A’s New Normal While overall M&A activity is up, 2024 has been driven by add-on acquisitions, rather than new platform investments. Add-ons are easier to finance and diligence, provide the ability to leverage synergies and allows investors to deploy capital efficiently while building value in their existing portfolios. As the middle market M&A markets continue to ramp, the focus will become more balanced between add-ons vs. platform investments which should provide more opportunities for great companies. “Risk On”: Financing the Future Another welcome trend is that lender interest rates are on the decline, supporting more robust financing conditions. With a 50-bps reduction in underlying rates and a 50-bps reduction in spreads (risk premium), the overall effect is nearly a 1% reduction in cost of debt capital. The "risk-on" environment is favorable for both buyers and sellers, offering more attractive terms and financing options for deal-making which in turn should continue  to support strong valuations. Please click here to read more of our key takeaways from M&A East 2024: https://lnkd.in/eBtWPRaJ Association for Corporate Growth (ACG) ACG Connecticut #mandaeast #investmentbankers #familybusinesses #markettrends #mergersandacquisitions #middlemarket #manda Michael Carter Frank Morse Chris Reenock Geoff Bradley Emmett Iheagwara Conor Riordan Jean-Paul Chiappini Will Hering Debbie Scholz Kimberly Reddington

Sometimes the best move is to not move, but hold steady. That's a strategy Raymond James Financial has long held despite criticisms when it took years to integrate Morgan Keegan (remember 2012?) and not betting on low interest #rates in 2023. I had an interesting discussion with both outgoing CEO Paul Reilly and incoming CEO Paul Shoukry this week. Here's what they had to say on playing the long game to record #profits, the battle to hold the line against #PE buyouts and what it takes to attract #advisors. #wealthmanagement #finance #technology #raymondjames

Your M&A questions answered: Which buyers are kicking butt? Who has been MIA? Was the Fisher deal an outlier? What's up with deal terms and valuations? Matt Cooper Allen Darby Chip Roame Dan Seivert David DeVoe Steven M. Levitt Laura Delaney Fisher Investments Tom Burroughes Family Wealth Report #RIAs #mergersandacquistions

While many of the big alternative asset managers have spent years scaling up crucial lending businesses to compensate for the maturation of the private equity industry, one notable firm remains behind -- Carlyle. The firm’s footprint in credit grew in fits and starts over much of the past 25 years, marked by turnover and whiplash from strategy shifts. More than a year into Harvey Schwartz’s tenure, the 60-year-old CEO is still trying to ramp up the credit business in the face of permanent shifts in the industry — and make Carlyle a bigger alternative-asset superstore. My latest story, by Dawn Lim, me, and Ellen Rose Schneider https://lnkd.in/eMYdCwYE #privateequity #finance #wallstreet #leveragedfinance #privatecredit

Jersey Mike's, the rapidly growing sandwich chain, is set to be acquired by private equity firm Blackstone. The deal, valued at approximately $8 billion including debt, aims to accelerate Jersey Mike’s expansion in the U.S. and beyond, while supporting ongoing technological investments. Founder and CEO Peter Cancro will continue leading the company and retain a significant equity stake. The transaction, expected to close in early 2025, is subject to regulatory approvals and other conditions. #investmentideas #investments #shares #financialmarkets #business #stocks #economics #finance #familyoffice #investors #earnings #usequities #growthstocks #valuestocks #money #capital #investmentadvisory #sp500 #financialmarkets #gccfamilyoffices #gccfamilyoffice #singlefamilyoffice #familyofficeinvestments #credit #bigtech #middleeast #mideast #volatility #vols #risk #equities #privatebanking #wealthmanagement #investmentmanagement #wealthadvisory #investmentadvisory #externalassetmanagers

The abrdn UK Smaller Companies Growth Trust plc sees significant opportunities in UK small caps, with valuations at historical lows compared to large caps and global peers (15x PE vs 20x globally). Fund Manager, Abby Glennie, highlights the appeal of structural earnings growth, resilient industrials like Morgan Sindall, and the turnaround potential of Trustpilot. With clarity from the UK budget, declining interest rates, and a 25-year proven quality-growth-momentum strategy, the trust is poised to navigate risks while capitalizing on growth and valuation re-ratings. #AUSC #InvestmentTrust #UKEquities #SmallCaps #GrowthPotential

The growing popularity of Continuation Funds. Hayley McCollum of Marquette Associates discusses how more recently, general partners have come to occupy an increasing percentage of the overall market. In 2023, about $110 billion in volume traded in private equity secondaries, with about 50% of the total transaction activity represented by GP-led transactions. #Secondaries #Secondary #SecondaryMarket #AlternativeInvestments #PrivateMarkets https://lnkd.in/eM8PdB5n

We are pleased to welcome Darren Schluter, PJT Partners, as a speaker on "Navigating Opportunities in Secondaries" Roundtable on May 23, 2024; 11AM-12PM PT, 2-3PM ET. RSVP / Info: https://lnkd.in/g2EGV8p7 Darren's co-speakers include: Veena Isaac, Apollo Global Management, Inc. Matthew Heinz, Lockton Damian Jacobs, Kirkland & Ellis Kenneth Blazejewski, Cleary Gottlieb Steen & Hamilton LLP Moderated by Alex Kasdan, Convergence The secondaries market is expected to maintain strong growth trajectory in 2024, across both the GP- and LP-led transactions, driven in part by continued lack of traditional liquidity, high interest rates, geopolitical uncertainly, the valuation disconnect, and opportunity to diversify and generate significant investor returns. The panel will discuss market opportunities in secondaries, transaction structures, capital availability and mitigation of transactional risk with insurance, as well as address questions from the audience. #secondaries #deals #mergersandacquisitions #privateequity #liquidity #structuredfinance #hedgefunds #distressedassets

The Takeover Panel must go! The Takeover Code once served a purpose but now stands in the way, giving too much agency to board directors whose interests are not aligned with those of shareholders. This is one of the reasons #UK #equity #markets trade at a perennial discount to the U.S. Relax the Code, and let bids go to shareholders for votes- and you will see that more often than not, the owners want exits. This will allow for the much-needed recalibration in British equities. #investing #shareholderactivism #lse

We are pleased to welcome Kenneth Blazejewski, Partner, Cleary Gottlieb Steen & Hamilton LLP as a speaker on "Navigating Opportunities in Secondaries" Roundtable on May 23, 2024; RSVP / Learn more here: https://lnkd.in/g2EGV8p7 Ken's co-speakers include: Darren Schluter, PJT Partners Veena Isaac, Apollo Global Management, Inc. Matthew Heinz, Lockton Damian Jacobs, Kirkland & Ellis Moderated by Alex Kasdan, Convergence The secondaries market is expected to maintain strong growth trajectory in 2024, across both the GP- and LP-led transactions, driven in part by continued lack of traditional liquidity, high interest rates, geopolitical uncertainly, the valuation disconnect, and opportunity to diversify and generate significant investor returns. The panel will discuss market opportunities in secondaries, transaction structures, capital availability and mitigation of transactional risk with insurance, as well as address questions from the audience. #secondaries #deals #mergersandacquisitions #privateequity #liquidity #structuredfinance #hedgefunds #distressedassets