Country / Language

Deals and Exits Snapshot for April 2016


5/9/16

Deal activity remains somewhat muted by challenges associated with origination, closure, competition and a continued sense of unease in the markets. Investors are anxious to make progress and break out of this malaise, but are only willing to do so with extreme caution. In April 2016, 174 middle market deals closed—a decrease of 17% year over year. Capital invested was flat. Exit activity in April 2016 was off by 6% year over year, and capital exited increased by 17% indicating that this continues to be a good time for sellers. Private equity firms are implementing additional strategies to originate deals; some focusing on qualitative targets like “family businesses” and those businesses owned by “baby boomers.” Competition from strategic buyers, corporate VCs, and family offices continues to add complexity to negotiating and closing deals that fit private equity investment models.
 
In addition to embracing additional origination strategies, private equity investors are working to wring more value from their investments by conducting value-driven diligence and robust integration plans for new acquisitions. To shorten the transaction time frame, improve the certainty of close, and maximize value, dealmakers have placed additional emphasis on sell-side preparation in advance of a transaction. We are hopeful that the pipeline of quality deals will start to replenish and a greater number of transactions will close as the year progresses.

This has been prepared for information purposes and general guidance only and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick LLP, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

Search Our People

Search Our People

Look ahead. Gain insight. Imagine more. Is your business ready to break through?

View our new TV commercial..

Industry Outlooks

Industry Outlooks

Gain insight into what is ahead for the Commercial Real Estate, Technology and Middle Market Private Equity industries.

READ MORE

Learn about our upcoming events.

READ MORE

Working With Us

Working With Us

What makes CohnReznick different from others in our profession? And what should our clients come to expect when working with us? The answer is The CohnReznick Advantage. Contact us to learn how we can out the CohnReznick Advantage to work for your business.


People

The value of an organization is determined by the skills and qualities of its leaders. With more than 280 partners serving clients nationwide, CohnReznick is renowned for the diverse experiences, knowledge and backgrounds of its leadership.

Learn More

Services

We align our services in three segments: Accounting and Assurance, Tax, and Advisory. This approach allows us to provide holistic solutions to complex business problems and to seize upon opportunities requiring an integrated approach.

Learn More

Industries

Accounting and tax issues different significantly based on an organization's industry. We provide clients with expertise in nearly two dozen industries – we know the opportunities, the obstacles, the competitive landscape.

Learn more

Insights

CohnReznick professionals are thought leaders in their industries. Clients benefit from relevant and timely economic, legislative and industry insights that can keep them a step ahead of competition.

Learn More

Global Reach

Our involvement in the Nexia International network of firms enables us assist our clients wherever they do business-providing local expertise and connections wherever they needed. Nexia is comprised of 20,000 professionals operating in over 100 countries.

Learn More