US Private Equity Mid-Market Monitor: 2023 Outlook
Date
February 10, 2023 • 18 min read
DC Advisory US’ senior bankers share their 2022 reflections and anticipated key trends driving deal flow in 2023.
A note from US CEO, Scott Wieler
“2023 has started off as an exciting time for private equity and M&A, with settling market conditions paving the way for transformation to a ‘new normal’. Despite past challenges the market has faced, dealmakers are optimistic about the future, and corporate growth imperative is stronger than ever. While the US continues to lead the way, DC Advisory persists in strengthening our depth of domain expertise to deliver transactions of real consequence for our clients, globally” - Scott Wieler, CEO, DC Advisory US
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What’s driving deal flow in 2023?
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"As 2023 opens, notwithstanding the genuine pain that the current economic situation is causing, the mood in the market feels more positive than it did just a month ago" - Dan Graves, Managing Director
Aerospace, Defense & Government Services
“Lean in early on processes that are of high interest. In today’s market, buyers are prioritising certainty to close” - Ellis Chaplin, Managing Director
Business & Tech-Enabled Services
“Now is the time to get ahead and talk to business founders and the bankers they work with. There is an opportunity to be aggressive in the market while others wait on the side-lines. Good businesses will perform and drive value over the long term” - John Lanza, Managing Director
Education & EdTech
“H1 2023 is likely to be similar to H2 2022, which required creativity to close more complicated deals. We also expect a number of sellers to prepare for H2 2023 process launches, when we project a more normalized deal environment” - Justin Balciunas, Managing Director
Healthcare
“There is a window of opportunity to get creative in exploring transactions that can bridge the bid/ask spread. Lean in to investment opportunities when competition is limited” - Rich Blann, Managing Director
Industrials
“We believe there is a strong window of opportunity approaching, and the best outcomes will be achieved through preparation today” - Matt Storkman, Director
Media & Telecom
“I am optimistic that 2023 will bring a narrowing of the significant gap between private equity and company expectations – leading to productive dialogue and opportunity for transactions & funding” - Gretchen Tibbits, Managing Director
Technology & Software
“There is great opportunity to expand businesses through a focused acquisition strategy. This is especially true with cross-border opportunities given the decline in market valuations, strength of the dollar and fundamental long-term growth in the Technology & Software industry" - Eric Edmondson, Vice-Chairman
Cybersecurity
“We believe there is a strong window of opportunity approaching, and the best outcomes will be achieved through preparation today” - Matt Fiore, Managing Director
e-Commerce & Marketing Tech
“Execute on consolidation strategies based on thematic work that’s been done to build a sector leading platform” – Frank Cordek, Managing Director
Infrastructure Software
“Break the logjam by catalyzing transactions with the targets you are most interested in pursuing” – Joel Strauch, Managing Director
Property Technology
“2023 will likely be rough for capital intensive prop tech, with companies being absorbed or going out of business. It’s a great time for investors to come in or for strategics to augment their products, capabilities, and customers” Jane Santini, Director
Predicting future activity is an art and not a science and this analysis is not scientific. It is informed judgement – much like the best M&A advice.
All data included in this publication was sourced from Mergermarket and Pitchbook unless otherwise indicated.
For important information regarding this publication, please see our Insights and Publications disclaimer >
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