The Middle Market Review Insights on the Middle Market.
As 2012 was winding down, after most firms spent October and November trying to close deals, Axial saw an uptick in interest from investors on the market. While fewer deals were coming to market, many investors tried to get ahead as they started pursuing more deals than usual.
The beginning of the year gives everyone a great chance to look back at the past year and look forward towards what might happen in the coming year. We examined all of the data from 2012, interviewed leading industry experts and sent a survey to 14,000+ deal professionals in order to put together a report providing a comprehensive overview of what happened and what’s to come.
Highlights from the report include:
- 2012 was a year defined by perennial uncertainty, influenced by the JOBS Act, the presidential election, the fiscal cliff, and others.
- 84% of survey respondents closed at least one deal in 2012.
- Low interest rates discouraged many owners from selling their businesses, as there were few options for post-sale investment.
- Dry powder helped drive larger PE firms down market, driving subsequent valuations up.
- Despite the excess dry powder, 57% of survey respondents believe that strategics will be more active in 2013.
- Strategics are expected to be the most active investors in 2013, with most activity predicted to occur in the Healthcare, Energy & Utilities, and Technology spaces.
For more analysis, read the 2012 Review & 2013 M&A Activity Outlook Report, which examines the significant trends and industries of 2012, and outlines key developments likely to emerge in 2013.
Thanks to Members Stephen Connor of Hamilton Robinson Capital Partners, Marek Olszewski of Catalus Capital, Spencer South of Lazarus Capital Partners, and Edwin Burke and Chris Eichmann of Pillsman Partners for their commentary in the report.