M&A profits appear to be rising at the big Wall Street investment banks. Analysts posit that the post-COVID M&A hangover is finally over, but there is still uncertainty due to the elections this Fall. No one knows what the regulatory climate will look like until we see what the election brings.
In our practice, we have a solid pipeline of deals, but business owners have been hesitant to pull the trigger due to worries about valuation and the overall economy. Our experience says that strong businesses will be valuable regardless of what happens in Washington. Yes, certain sectors will see ups and downs based on administration priorities (e.g. energy), but the impact tends to be greater on large publicly held companies that are at the mercy of Wall Street sentiment.
Middle market companies are valued more on the health of the business, profitability, and market growth potential than due to macro-economic factors. There is a lot of money sitting on the sidelines looking for Tech M&A and Healthcare M&A opportunities.