Since last year, PE firms have taken a step back from closing deals. Following the deal boom of 2021, many firms enjoyed a prosperous fundraising period. But even with pockets full of dry powder, firms have been reluctant to capitalize given a flurry of global and economic headwinds.
Instead, firms have assumed a conservative approach in preparation for all eventualities: Will the Fed keep raising rates? Will inflation cool? Are we looking at a hard or soft landing?
In this episode, we speak with Pierce Coticchia of Altamont Capital about the firm’s operational focus and their latest commitment to entering the ESG market space.
Historically, the driving forces behind M&A investment strategy have been primarily strategic fit and financial profile. However, Environmental, Social, and Governance (ESG) have become increasingly critical in these decisions. More than ever, ESG considerations are integral to assessing strategic fit – a major shift from ESG as a desirable add-on to a deal-making necessity.
From identifying potential opportunities to forecasting company metrics and revenue, AI has the potential for unparalleled impact in the M&A process. While traditionally, AI facilitated data analysis and risk mitigation, the emergence of recent technology – specifically large language models – has exponentially expanded its impact. These models can process vast amounts of textual data, enabling a nuanced understanding of market dynamics, potential M&A opportunities, and competitive landscapes.